Yesterday’s signals were not triggered, as there was no bullish price action at 1.3221.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today, during the next 24-hour period only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3217 or 1.3300.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3112 or 1.3057.
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 yesterday that I had no directional bias between 1.3221 and 1.3300. Once the price broke below 1.3221, it continued downwards for about another 50 pips or so, before flattening out over recent hours. I was surprised by this move. We are seeing more weakness in the British Pound and due to the lack of buying, it looks as if it is going to fall further today. The U.S. Dollar is also generally strong, so it makes sense to have a bearish bias. The price is also making new 6-month lows which is a bearish sign. We may find the price is much more supported as it gets close to the psychological level of 1.3000.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.