Last Thursday’s signals were not triggered, as the bearish price action took place a little way above the resistance level of 1.3400.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3409.
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 1.3307 or 1.3221.
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
Last Thursday I took a bearish bias below 1.3400 and this worked out well, with the price continuing to fall right until the week closed. Today the U.S. Dollar has opened significantly stronger, but it is notable how the action here looks significantly weaker than in the EUR/USD currency pair, with the price initially opening below the nearest support level at 1.3307. This suggests that should the U.S. Dollar turn weaker later, a short trade in this currency pair is likely to be the best way to trade it. However, I have no directional bias today, as trading is likely to be very thin with both London and New York on holiday.
There is nothing due today concerning either the GBP or the USD. It is a public holiday in both the U.K. and the U.S.A.