Yesterday’s signals were not triggered, as none 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, over the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3308.
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 1.3145.
Place the stop loss 1 pip below the local swing low.
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 yesterday that we were likely to see higher prices today, and I was right, with the Pound continuing its upwards movement and invalidating the former resistance level at 1.3216. The movement does not have a very strong quality, but it is steady, so we have a long-term bearish trend but relatively solid short and medium-term bullish trends right now which are likely to continue to push the price higher. There are two things to watch out for: a possible resistance from the psychological round number at 1.3250, and the fact that there is very important U.S. Dollar data due later which could push the price anywhere if it is surprising. I have a bullish bias until the New York open, above 1.3200.
Concerning the GBP, the Governor of the Bank of England will be giving a minor speech at 11am London time. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm, followed by the ISM Non-Manufacturing PMI at 3pm. There will be a release of Crude Oil Inventories data at 4pm, and finally the FOMC Meeting Minutes at 7pm.