Yesterday’s signals were not triggered, as the price did not reach 1.3337 until after the end of the specified session. At the time of writing, the price appears to be turning bullish from that support level, so a long trade entry at the London open may be possible if that condition persists.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3286.
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 Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3456.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 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
The price began to rise but reversed to turn bearish as London opened, and then fell quite gently over a quiet day’s trading to end at or very near to the support level at 1.3337. The price looks as if it has found support there, and is beginning to rise. It looks like this could be a low-risk, high reward long trade entry, but it is usually dangerous to enter this pair before 8am London time and it can reverse very unpredictably at the open, so it is important to be careful and wait. There is also some U.K. data coming an hour and a half after that which could push the price anywhere.
There is still a very weak long-term trend, but the U.S. Dollar remains relatively strong, so it is difficult to see the price rising here by much more. I think the trend will probably end soon, I would even call it over if the price gets established below 1.3337.
Regarding the GBP, there will be a release of CPI data at 9:30am London time. Concerning the USD, there will be a release of PPI data at 1:30pm.