Last Thursday’s signals were not triggered, as there was no bearish price action at 1.2735.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2818.
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 1.2616.
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 last Thursday that the British Pound was weaker than the Euro, and that the resistance at 1.2735 looked like it would be the pivotal level today. It did provide some resistance, but the real level was a little higher. Even as we have seen the EUR/USD currency pair rise over recent days, we see this pair rise a little in tandem but also really struggle to get above the 1.2750 area. For this reason, although the price may not be ready to fall yet, I am ready to take a bearish bias today after any clear failure to rise above 1.2750 as the London session gets underway.
There is nothing important due today concerning the GBP or the USD.