Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3300.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only, during the next 24-hour period.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3300.
Put 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.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3258 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
I wrote last Thursday that this pair looked messy and unpredictable, moving within a wide range. The pair fell quite strongly that day, with the Pound dragged down by a sharply falling Euro as well as a strong Dollar. The price is now consolidating within a narrow range between support and resistance below 1.3300. The overall picture is somewhat bearish, but if the support level at 1.3258 holds there is hope for bulls, in fact better to label this as the psychological level of 1.3250. I would be bearish below that level. It now looks as if the Pound may be more liable for a further fall than the Euro.
There is nothing important due today concerning either the GBP or the USD.