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 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 1.3997 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
Yesterday I had a bearish bias. The price fell over the past 24 hours but only by a little, with the focus shifting away from the Pound and towards the Euro over recent days. The Pound is also relatively strong, so it tends not to be hit by the Dollar so heavily when the Dollar is strong. Volatility in this pair is also falling which confirms that the focus is shifting away. The market’s focus should remain on the Euro today. I think the biggest movement here today will be the knock-on effect of what happens with the Euro later, with the Pound tending to get dragged along with whichever direction the Euro moves in. If the Euro gets a boost, this pair would be likely to rise even more strongly than the EUR/USD.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.