Yesterday’s signals were not triggered, as there was no bullish price action at 1.3983.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3983 or 1.4037.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3879 or 1.3822.
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 the support level at 1.3983 was likely to be very important: if that broke down, it would be a very bearish sign and suggest that the long-term trend had a serious chance of reversing soon. The level did break down, on a day where the U.S. Dollar made gains everywhere. However, the long-term bullish trend is still intact, and the Pound is holding up better against the Dollar than most other currencies, albeit with high volatility. It looks as if momentum is likely to remain with the Dollar unless the U.S. data due later today is very disappointing. If sentiment does turn against the Dollar, a long trade in this pair would be likely to be the best way to exploit it. I have no directional bias on this pair today. The strongest support or resistance level anywhere close to the current price is likely to be 1.3983.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence at 3pm London time.