Yesterday’s signals were not triggered, as there was no bullish price action at 1.3381.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered 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 1.3337 or 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
I wrote yesterday that the short-term action was looking more bearish than bullish, which suggested that 1.3381 was going to be tested again, and would probably be less likely to hold on a second test. This is what happened. The U.S. Dollar has been strong everywhere, but less so against the Pound, which suggests a potential long trade today is likely to be more rewarding than a short trade.
This pair remains the most volatile of all the major currency pairs, and it has been at the heart of the Forex market for some time as there is so much uncertainty over the terms of the U.K.’s exit from the European Union.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.