Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today, during the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3482 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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3338, 1.3300, or 1.3261.
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 the price was right in a middle of a wide range, giving no short-term clues either as to direction as London opened. The price has eased down over the past day but still not broken any key support. Longer-term price charts show that the Pound looks relatively weak, but it looks as if the price needs to spend a little more time preparing to move down before it can make the move. A break below 1.3300 would probably be a bearish sign, but I think bullish bounces at any of the nearby support levels are going to produce sizeable bullish retracements and that such bullish bounces are the more likely scenario. The data due later for both currencies is likely to have a major impact and can override the technical picture..jpg "GBPUSD")
Concerning the GBP, there will be a release of Average Earnings Index data at 9:30am. Regarding the USD, there will be a release of CPI data at 1:30pm.