Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered 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 1.4091.
· 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 Trade
· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3983.
· 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.
· 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 had no directional bias yesterday, and this turned out to be correct as the price basically just consolidated in relatively quiet trading, with the focus of the market looking elsewhere as stocks sold off strongly. The fact that the price is holding up above the psychological level of 1.4000 and above the key support level at 1.3983 shows that there is still plenty of hope for bulls in line with the long-term bullish trend. I have a slightly bullish bias today.
There is nothing due today concerning the USD. Regarding the GBP, there will be a release of Manufacturing PMI data at 9:30am.