Yesterday’s signals were not triggered, as the bearish price action took place above 1.2920.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2934 or 1.2975.
Place 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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2846 or 1.2818.
Place 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 I would have a bullish bias if the price could get established above 1.2920 after London opened. The price did briefly get above that level, but pulled back quite quickly, so it wasn’t a great call but not far wrong. There is new, higher support at 1.2846 and the price may have already found a bottom there after a reasonably deep bearish retracement. We see some mild short-term bullishness, but the absence of any major news today plus the wide zone the price is in suggests that the price is quite likely to trade sideways today and remain below 1.2934 despite the medium-term bullish picture.
There is nothing important due today concerning either the GBP or the USD.