Yesterday’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 taken 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 1.3921.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4168.
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
Yesterday I had a bearish bias, seeing the price as likely to reach the support level 1.3921. This turned out to be incorrect, with the Pound trading upwards, although it was not very convincing. Nevertheless, the Pound is showing some relative strength against an otherwise strong U.S. Dollar, so if the Dollar sells off later it seems likely that the Pound would benefit most. As there is plenty of data due today for both sides of this pair, it is impossible to make a directional forecast, but if there is a move against the Dollar a long trade could play out well.
Concerning the GBP, there will be a release of Average Earnings Index data at 9:30am London time, followed by Inflation Report Hearings at 2:15pm. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm.