Yesterday’s signals were not triggered, as none of the entry conditions were met.
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 strongly bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4250.
· 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
· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4118.
· 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 took a bearish bias yesterday, expecting that if the price could get established above the resistance level of 1.4193, it should have a lot of room to rise higher. The price did invalidate this level and rise higher, but it subsequently fell back, especially after the FOMC minutes release which was positive for the U.S. Dollar. The U.S. Dollar advanced yesterday, so it is notable that the Pound looks as if it is holding up against the Dollar better than any other currency is. The technical picture is still bullish, so I maintain a bullish bias on this pair, which continues to look like the best instrument to use for shorting the U.S. Dollar. There are no key resistance levels for a long way above, yet the level at 1.4250 could provide resistance as there was a key swing high there some days ago, and because it is a key psychological level.
There is nothing due today concerning either the GBP or the USD.