Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 1.3113.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3134.
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 1.3082.
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.
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 last Thursday that although the technical picture was looking slightly more bullish, the short-term price action was suggesting a bearish pull-back. This pull-back happened and then strengthened to become a primary impulsive downwards movement. The price quickly made a low at 1.3082 and has recovered from there, but this pair still looks weak below 1.3134. In fact, the Pound looks weaker than the Euro over the medium term, so any Dollar strength today might be best exploited by trading this pair short. I have no directional bias, and it looks likely that today will be a very quiet trading day in the Forex market generally.
There is nothing important due today concerning either the GBP or the USD.