Yesterday’s signals were not triggered, as none of the key levels were reached during the specified session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3807.
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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4000 or 1.4058.
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
I was correct yesterday to be bullish, but wrong to expect a quiet trading session. The price rose firmly and the very important psychological level of 1.4000 was reached during the Asian session. This is another new 18-month high price, we are approaching pre-Brexit vote price levels. Another bullish factor is how the Pound is advancing while the Euro is standing still. However, it looks like we are going to see a bearish turn here from the rejection at 1.4000. The obvious place to look for a new long trade entry would be from a bounce at 1.3941, which is a new resistance flipped to support level. Another bearish rejection of the 1.4000 area later might become a major bearish double top formation. This pair is the major focus of the Forex market now, and traders should be taking an interest in what happens next.
There is nothing important due today concerning either the GBP or the USD.