Yesterday’s signals produced a long trade following the bullish pin candlestick rejecting the support level at 1.3400. The trade produced the minimum 25 pips of profit before being stopped out at break even.
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 1.3456 or 1.3521.
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 1.3400 or 1.3348.
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 I would have a bearish bias if the price could break strongly below 1.3431. It did break down but was then held by the support close by at the round number of 1.3400. The price rose from there but struggles to get significantly higher or break above the nearest resistance level at 1.3432, which is a bearish sign. The longer-term chart is bearish, and the British Pound is looking very weak as the London open is approached. Therefore, I am comfortable taking a bearish bias below 1.3400.
There is nothing due today concerning the USD. Regarding the GBP, there will be a release of Inflation Report Hearings at 10am London time.