Yesterday’s signals were not triggered, as there was no bearish price action at 1.3128.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3128 or 1.3018.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3178 or 1.3226.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
GBP/USD Analysis
This pair made a surprising bullish move, breaking up past the resistant level at 1.3128 which is now likely to become support, and adjusting the nearest resistance level to 1.3178. The price is falling now, and if it continues to 1.3128 and bounces, there could be a very interesting long trade entry there. The longer-term pattern is confusing, as the range is expanding at both the tops and bottoms. Although there is still, barely, a long-term bullish trend in force, the price is still contained by a very wide bearish channel. There is still a lot of volatility here, so movements are likely to remain large.
There is nothing important due today concerning either the GBP or the USD