Yesterday’s signals were not triggered, as there was no bullish price action at either 1.3400 or 1.3348.
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 1.3400 or 1.3482.
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 1.3307.
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 expected a break below 1.3400, and further downwards movement over the short-term. This is exactly what happened. I also noted that the British Pound was weaker than the Euro, and the move down was certainly stronger here than it was in the EUR/USD currency. The downwards move did not stop until the support level at 1.3307 was reached, where there was a reasonably strong bullish bounce. However, this looks as if it only a natural retracement, so I remain bearish below 1.3400.
Concerning the GBP, the Governor of the Bank of England will be speaking at 9am London time, followed by a release of Retail Sales data at 9:30am. There is nothing due concerning the USD.