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 only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2735 or 1.2818.
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 1.2616.
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 I was ready to be bearish once the short-term bullish retracement ended. This happened, and gave about 50 pips on the short side, before the price bounced up strongly later on. The action mirrored what happened with the EUR/USD currency pair, but comparing the two, we can see that the British Pound is weaker. As we approach the London open, the price is bouncing up against the resistance at 1.2735 which is showing initial signs of holding. It looks as if this will be the pivotal level today. If it holds failed attempts to rise as London gets underway, I would begin to take a bearish bias.
Concerning the GBP, there will be a release of Retail Sales data at 9:30am London time. There is nothing due concerning the USD.