Yesterday’s signals were not triggered, as the price never reached 1.3456.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 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 1.3456 or 1.3428.
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 1.3556.
Put the stop loss 1 pip above the local swing high.
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.
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 price was looking “heavy” and getting more likely to break below 1.3500 which could trigger a fall to the next support level. Although the price has broken below that level, the stronger fall has not really materialized, but there are initial signs now (as at the time of writing) that the movement is really beginning to happen. Technically the picture has become more bearish: descending trend lines can be drawn above, confluent with a new resistance level at 1.3556. There is still a long-term bullish trend in force, but it looks as if the price will reach 1.3456 at least today.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of PPI data at 1:30pm London time.