Yesterday’s signals were not triggered, as there was no bullish price action at 1.3759.
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 1.3822 or 1.3879.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3657.
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 had no bias yesterday. This pair fell a little, but not as much as the EUR/USD currency pair did, so it looks as if the Pound may be getting slightly stronger. It is difficult to say what is likely to happen today as there are important news items due for both currencies. The trend is bearish and so if the news items support that then there could be a strong downwards movement. It is difficult to see the Pound really being bought again so soon after such disappointing GDP data was released. However, there is an interesting technical feature – yesterday’s low at 1.3714 was equal to the lowest price of the past 3 months, and it produced a clearly bullish “U” shape price action pattern on yesterday’s short-term chart. If there is another move down failing at 1.3714 it would probably signal the start of a meaningful bullish retracement.
Concerning the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm.