Yesterday’s signals were not triggered, as there was no suitably bearish price action at any of the key levels which were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3482 or 1.3521.
* 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
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3388 or 1.3338.
* 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 had no directional bias yesterday, noting that the key support at the round number of 1.3300 looked healthy, suggesting that the pair was not quite ready to fall any further yet. The Pound has in fact made a relatively strong rise against a generally weakening U.S. Dollar, printing new higher support levels, and seeming to break above key resistance at 1.3409. Above 1.3409, the way is open for another test of the psychologically key area which begins at 1.3500. This is a deep bullish retracement within a long-term bearish trend. I again have no bias, but a continuing upwards move today would not be a surprise.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.