Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at 1.3914.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
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.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3963 or 1.3914.
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.
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 picture is now considerably more bullish, with the British Pound now looking like one of the relatively stronger major currencies. The break above the bearish channel is a bullish sign, but the printing of two new higher support levels, and the healthy push up from the second one, is what really decides it. The support at 1.3963 looks very firm, and the price has room to rise as there is no key resistance until 1.4168. If 1.3963 holds up, we can expect a resumption of the long-term bullish trend.
There is nothing important due today concerning either the GBP or the USD.