Yesterday’s signals were not triggered as the bullish price action was slightly below the support level identified at 1.3128.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3124 or 1.3018.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3178 or 1.3226.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
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
The chart below shows clearly that the price is stuck between the nearest levels of support and resistance, both of which are continuing to hold. There is a lot of volatility, but no real directional bias, although the prevailing range is slightly bearish. This makes it very difficult to predict the next movement. The wisest course of action will probably be to be prepared to take either long or short trades depending upon which level is rejected most quickly and strongly following the London open. There could be a good trading opportunity in this pair today.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.