Yesterday’s signals were not triggered, as there was no bearish price action at 1.4092.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades between 8am and 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 1.3917.
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 1.4092.
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 this pair was at a very pivotal point, this could either be a major low or we could see the price break below 1.4000 and continue down to the next key support level at 1.3917. My directional bias depended upon when happens at or very close to 1.4000 after London opens. Well, after London opened, the price fell to 1.4000 and turned around bullishly quickly, and since then has made a strong rise of more than 200 pips, so I think it was an effective forecast. The British Pound is now the strongest of all major currencies and the price is moving strongly back in line with the long-term trend, after flipping the former resistance level at 1.4092 to become probable new support. It is possible that the price might struggle to rise above the round number at 1.4200, but the current action suggests still higher prices, and an eventual retest of the key high at 1.4330. I have a bullish bias, but as there is plenty of major news due later today, anything could happen during the later part of the New York session
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There is nothing due today regarding the GBP. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.