Yesterday’s signals were not triggered, as the bullish price action took place just a little below the support level identified at 1.3921.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may be entered between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3914.
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
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 Second Estimate GDP data at 9:30am London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm.