Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 1.3856 or 1.3824.
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 1.3940.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3822.
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
I wrote last Thursday that this pair was looking increasingly bullish although I did not take a directional bias. The situation now seems to be less bullish, although there was strong buying below 1.3800. There is also strong buying as we approach the London open which suggests that the price is going to rise in the short term. I have a cautious bearish bias but if the price turns bearish and gets established below 1.3822 it will be a very bearish sign. Another interesting thing to note about this currency pair is that volatility has decreased to the point where it is no longer the most actively traded of the major Forex currency pairs.
There is nothing due today concerning either the GBP or the USD.