Yesterday’s signals were not triggered, as none of the key levels were reached yesterday.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm London time today, during the next 24-hour period.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3308.
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 1.3145.
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 wrote yesterday that there were signs that the price would move up, and although I didn’t call it, this is what happened. The Pound now looks, at the time of writing, more bullish than the Euro, with a break above the resistance level at 1.3216 happening even before the London open, which is a bullish sign. I think we will see higher prices today unless the British data release is very poor, but the action will almost certainly slow down after the first few hours of the London session, due to the U.S. holiday today. It looks as if the price will make another test of the 1.3300 area later this week.
Concerning the GBP, there will be a release of Services PMI data at 9:30am London time. There is nothing important due today regarding the USD. It is a public holiday in the USA.