Yesterday’s signals were technically not triggered, although the bullish move did base at the support level of 1.2840 when it happened.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2934.
- 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.
- Remove50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2862, 1.2840, 1.2820, 1.2780, or 1.2755.
- 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 noted yesterday that although the pair is in a long-term bearish trend, the bunched support levels below the current price were likely to hold the price up over the short-term. This is what happened, and there was even an upwards movement, but this was all caused by a strong Euro dragging the Pound up rather than by anything to do with the Pound itself.
There is no real change from yesterday’s situation, except we see a higher new support level at 1.2862. If the price tests and rejects that level from above as London opens, I would take a bullish bias today up to 1.2934.
There is nothing important due today concerning either the GBP or the USD.