Yesterday’s signals were not triggered, as none of the specified price levels were reached during the London session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today, 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 1.3309.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of.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
This pair has been out of focus, with very unclear and drifting price action taking place. Forex markets have been generally quiet and aimless this week, so its been hard to make any money anywhere, let alone in a drifting pair like this one.
The long-term picture is bearish, and the Pound seems at least a little weaker than the Euro. This means that if the U.S. Dollar starts to strengthen more obviously, a short trade here could become interesting, but there is no sign of that happening yet. The price is now right in the middle of a very wide range between levels, so I think the most likely scenario today is for more aimless, ranging action, unless there is a surprise from the Governor of the BoE later on.
Concerning the GBP, the Governor of the Bank of England will be speaking about the Financial Stability Report at 9:30am London time. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm, followed by Crude Oil Inventories data at 3:30pm.