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 taken between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3174.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3082 or 1.3000.
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 would take a bearish bias between 1.3082 and 1.3000. Neither of these levels were reached. This pair is moving to become the focus of the Forex market today, with major central bank input due a little later from the Bank of England. At the time of writing, the price is looking heavy, as though it is about to test the key support level at 1.3082. This is quite likely to hold until the Bank’s releases, which could push the price anywhere, but any dovish surprise will probably have the effect of pushing the price down to the next support at the psychological round level of 1.3000. Technically, the scene is set for a downwards movement, whereas a hawkish surprise looks less likely to produce such a strong upwards movement. Following the first release, I would be bearish between 1.3082 and 1.3000.
Concerning the GBP, there will be a release of Construction PMI data at 9:30am London time. The Bank of England Inflation Report is due at Noon, along with the Monetary Policy Summary and Official Bank Rate. The Governor of the Bank will be speaking half an hour later. There is nothing due regarding the USD.