Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
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 1.3807.
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 Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4000.
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 last Thursday to identify the level at 1.3807 as support, but I was too pessimistic about the possibility of a rise from that level. The price took off from there and eventually made a new 18-month high price. Since then the price has sold off, but the support level has not even been tested yet, and this pair is looking relatively bullish compared to the EUR/USD currency pair, in line with its long-term bullish trend. For these reasons, I would still be interested in a long trade from a bullish bounce at 1.3807.
There is no major news scheduled today, so it is likely to be a relatively quiet trading session.
There is nothing important due today concerning either the GBP or the USD.