Yesterday’s signals produced a losing short trade from the bearish pin candlestick rejecting the resistance level at 1.3377.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3338, 1.3377, or 1.3409.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3300, 1.3261, or 1.3221.
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 saw higher prices yesterday and we did get that, but the price was unable to settle above 1.3377 for any time so the rise was not sustained, and the price ended up falling lower. However, the key support at the round number of 1.3300 looks healthy, suggesting that the pair is not quite ready to fall any further yet, although the Pound is generally weaker than the Euro. I have no directional bias today and the probable action looks uncertain here. There is major data due for both currencies later, which could push the price in an unpredictable direction. The technical picture would look much more bearish with the price below 1.3300.
Concerning the GBP, there will be a release of Services PMI data at 9:30am London time. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.