Por: DailyForex
Last Thursday’s signals were not triggered, as the bearish price action occurred above all the identified resistance levels.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade
- Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3657.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3993.
- 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
The Pound has been generally weak, despite its long-term bullish trend, especially against the strong U.S. Dollar. It is notable how even with the recovery of many currencies against the Dollar over recent hours, the Pound has still not managed to rise by much. Technically, the price is not far from its recent lows, yet there are no support or resistance levels close to the current price in any direction. This, coupled with the absence of any major scheduled news releases, suggest the price is likely to move aimlessly today. I have a bearish bias as I believe such aimless movement is still more likely to be a downwards-drifting direction, despite the long-term trend which is still technically in force.
There is nothing due today concerning either the GBP or the USD.