Yesterday’s signals were not triggered, as the bearish price action at 1.3134 was too slow.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3174.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3082.
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 the Pound looked weaker than the Euro over the medium term, so any Dollar strength might be best exploited by trading this pair short. I had no directional bias. This was mostly a good call, as in fact the Dollar weakened, and the Euro rose against it significantly more strongly than the Pound did. Often, noticing differential recent strength or weakness between two currencies which are usually positively correlated can give you a good hint which pairs are best traded and in which direction, and here the sign was to keep longs to EUR/USD instead of GBP/USD.
There is little change to the technical picture. The price is slowly struggling up, and almost exactly halfway between support and resistance, which suggests little directional edge. The action is choppy enough to suggest that anything could happen here. Therefore, I take no directional bias today on this pair.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.