Yesterday’s signals were not triggered, as there was no bullish price action at 1.2951, and because there was insufficiently bullish action at 1.2920 although it held as the day’s low price to the pip.
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 1.2951
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 1.2920 or 1.2858.
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 there was every reason to take a bearish bias, and this was a good call, with the downwards movement being the strongest directional movement in any major currency pair over the London session. New, lower resistance at 1.2951 was flipped from former support, but the late Asian session seems to see this level being broken from below. This suggests that we may see a short-term rise today or a bullish consolidation. There is a good long-term bearish trend here, but the price may not be ready to fall further. I would want to see the price firmly below 1.2951 at 9am London time and moving down over the short-term before taking a bearish bias today.
There is nothing important due today concerning either the GBP or the USD.