Last Thursday’s signals were not triggered, as none of the key levels were quite reached during the specified time session.
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 1.3657.
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 1.3839.
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
In my previous analysis last Thursday, I saw the price as looking quite bearish. Over the next couple of days, I was proved completely wrong as the price turned around and broke out above the short-term bearish trend line, rocketing up and making a new 18-month high price, in line with the long-term bullish trend. This presents a bullish picture, although at the time of writing the price appears to be rejecting 1.3750 which is a key psychological level, so we might see a retracement or consolidation today. The best idea might be to stand aside today unless something exceptional happens, but the support at 1.3657 could be an interesting level for a buy if it is reached with a bullish reaction later today.
There is nothing important due today concerning either the GBP or the USD. It is a public holiday in the U.S.A. today.