Yesterday’s signals were not triggered, as there was no bullish price action at 1.3155.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today, over the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3127.
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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3057, 1.3029, or 1.3000.
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 expected more ranging action yesterday, but the picture has become more bearish, in fact even more bearish than the typically closely correlated EUR/USD pair. This is not very surprising as the action was already looking more bearish yesterday, so there seems to be some weakness in the Pound. It makes sense to be bearish over both the short and long terms, but it is worth noting that there is a key psychological level not far below the current price at 1.3000, which could be reached at the same time as 1.1500 on EUR/USD is hit, and that might provide an event of bullish confluence which ends up producing a major bounce or even trend reversal. In the meantime, the action is very bearish, and I have a bearish bias on this pair today.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Final GDP data at 1:30pm London time.