Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Protect any open trade by 6:30pm.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3286 or 1.3221.
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 Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3456.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 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
Yesterday’s trading was quite quiet, as had been expected, but the price did break below the key support level at 1.3337 and has so far held below it, which is a bearish sign. The price is now almost below its level of 3 months ago, signalling an imminent end to the long-term bullish trend. If the price continues to hold below 1.3337, it will be a bearish sign. This is the most volatile currency pair, and there is major news due for both currencies within the pair today, so the price could go anywhere, exacerbated by the volatility. This makes it impossible to predict what today is most likely to bring, although a mildly bearish price flow is certainly present. Fading spikes after the news to key levels which are then quickly rejected tends to be the best play on a day like today.
Concerning the GBP, there will be a release of Average Earnings Index data at 9:30am London time. Regarding the USD, there will be a release of CPI data at 1:30pm, followed by Crude Oil Inventories at 3:30pm, and FOMC economic projections, Statement, and the Federal Funds Rate at 7pm. Finally, the FOMC Press Conference will begin half an hour later.