Last Thursday’s signals produced a long trade entry from the bullish doji candlestick with formed at the support level identified at 1.3112.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today, over the next 24-hour period.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3309 or 1.3350.
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 1.3218 or 1.3155.
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 I was more interested in short than long trades, but the Bank of England quickly surprised the market by making a more hawkish vote on a rate hike, which sent the Pound up firmly. I thought it was significantly bullish that the price quickly got established above the psychologically important 1.3250 level. This rise has cooled off over recent hours as safe-haven assets like the U.S. Dollar have strengthened, but no support level has yet been broken so the impulsive movement still looks bullish. However, I have little confidence that the nearby support level will hold, so I have no directional bias today. Trading today is likely to be relatively quiet.
There is nothing important due today concerning either the GBP or the USD.