Yesterday’s signals were not triggered, as none of the key levels were reached during yesterday’s session.
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 1.3584 or 1.3666.
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 1.3500.
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 the price was likely to make a lower low, but as it turned out, the major round number at 1.3500 was not even reached again, and the short-term direction has now turned bullish. The Pound seems to be the most bullish of all the major currencies. At the time of writing, the price is testing the resistance level at 1.3584 – it may reverse here after London has been open for an hour, and in that case, it could provide a short trade. However, if the price gets established above the level, it would be a short-term bullish sign signifying that the price would be likely to close up today.
There is nothing due today concerning the GBP. Regarding the USD, the Chair of the Federal Reserve will be speaking at a conference at 8:15am London time.