Yesterday’s signals were not triggered, as there was no bullish action at 1.3307.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3409.
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 1.3221.
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 directional bias yesterday, as I thought trading was likely to be very thin with both London and New York on holiday, and it was. The only notable thing is that the former support at 1.3307 seems to have been invalidated by inconclusive price action in the area. There is a long-term bearish trend, so I have a bearish bias on this pair, although I see the Euro as more bearish than the Pound right now so being long USD might work better as short EUR/USD than short GBP/USD. There is no support until 1.3221 so the price could fall quite a long way if it does move down.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.