Yesterday’s signals were not triggered, as there was no bearish price action at 1.3981.
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 H1 time frame immediately upon the next touch of 1.3921.
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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4168.
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 wrote yesterday that a break below 1.3981 was also likely to produce a fall to at least 1.3921, and it looks as if this is what is playing out now as the price moves down, mostly due to U.S. Dollar strength. I had seen a little relative strength in the British Pound, which appeared to be holding up better than the Euro with which it is usually closely positively correlated. This seems to have disappeared now, so I have a bearish bias today and see the price as likely to reach 1.3921
There is nothing due today concerning either the GBP or the USD.