Last Thursday’s signals produced a profitable short trade triggered by the bearish pin candlestick which rejected the resistance level identified at 1.3597.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3597 or 1.3666.
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 1.3534 or 1.3456.
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 wrote last Thursday that a break above 1.3597 would be a bullish sign but I also wrote that it would be hard to predict direction. The forecast turned out to be good as the level did hold, but although the U.S. Dollar has weakened, the level continues to hold, with the pair just ranging between 1.3600 and 1.3450 (roughly). It seems that the Pound is now weaker than the Euro. This means that if the USD weakness continues, it will probably be a better idea to be looking for long trades in EUR/USD than to do anything here. It is likely that the range will continue to hold today in the absence of any major news releases.
There is nothing due today concerning either the GBP or the USD.