Yesterday’s signals were not triggered, as none of the key levels were reached during yesterday’s London session.
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 1.2842 or 1.2920.
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 1.2818 or 1.2780.
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 take a bearish bias after any clear failure to rise above 1.2750 as the London session got underway. Instead the price simply powered up very bullishly to rise above that level and continue to advance. We have seen a strong rise, but the real story is a fall in the U.S. Dollar and a rise in the Euro, both of which are having the effect of dragging the price of this pair up against the long-term bearish trend.
It now looks as if 1.2842 will be today’s pivotal level. I would have a bullish bias if the price can get established above that level as the London session gets underway, but I generally feel more comfortable being long of EUR/USD than this currency pair.
There is nothing important due today concerning the GBP or the USD.