Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3145.
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.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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.
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 yesterday that direction looked very uncertain due to political instability in the U.K. as well as the fact that the price was in the middle of a very wide zone between any key support and resistance. This is still true, but it looks as though there is minor support confluent at the round number of 1.3200 where we have seen some buying, so over the very short term the price could move up from here. However, it still looks generally very uncertain, so this currency pair is probably best avoided for the time being, with better opportunities likely to be found in the EUR/USD or USD/JPY currency pairs today.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of CPI data at 1:30pm London time.