Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.3525.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3456.
· 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.
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 if the support at 1.3500 continues to hold, then the price would be likely to turn more bullish and go on to make new highs. The level has held so far, but the price has not risen, and instead is looking more “heavy” and likely to break below 1.3500. If it does, it is likely to fall by at least 50 pips or so as there is room for it to fall cleanly to at least 1.3456. A bullish bounce there could produce a swing trade long, in line with the long-term bullish trend. Such a downwards move might be triggered by significantly poorer than expected British Manufacturing Production data not long after London opens.
Concerning the GBP, there will be a release of Manufacturing Production data at 9:30am London time. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm.