Yesterday’s signals were not triggered as there was no bearish price action at either 1.4058 or 1.4092.
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 1.4092.
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 1.4330 or 1.4435.
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 have been highlighting this pair, telling traders to pay attention to it, and taking a bullish bias. I was certainly correct yesterday, as the day’s price rise was the largest rise this pair has seen for many months. Unfortunately, the price never returned to the nearest support level to provide a very clear entry, but in such strong trends you can often afford to be less picky with your entries.
After continuing to rise very strongly during the Asian session, the price reversed quite strongly at 1.4330, which was a key inflection level during the period leading up to the Brexit vote in 2016 – it was that long ago since this pair has reached these prices!
There is no reason not to remain bullish, despite the very strong rise which makes the pair look overbought. There has been no price action to indicate any real change to the dominant bullish pattern, so I maintain a bullish bias.
There is nothing due concerning either the GBP or the USD today.