Yesterday’s signals were not triggered, as the price did not bounce bullishly off 1.3940 until the end of the specified time.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 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 1.4168.
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.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3940 or 1.3888.
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.
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 this bullish move may have further to run but could be due a deeper pull-back as London opens. There are no key resistance levels for a long way above, but the psychologically important 1.4000 area is close by and might prevent any further short-term rise in the price. The 1.4000 did prevent the price from getting any higher, but the support at 1.3940 also held firmly, so we have an unchanged and still bullish technical picture. It is worth noting that this pair looks more bullish than EUR/USD at present. For this reason, I have a bullish bias today on this pair, but the big round number above at 1.4000 will have to be overcome. There are no key levels above that until 1.4168, so if the price does break up, it could be a runner.
There is nothing due today concerning either the GBP or the USD.