Yesterday’s signals were not triggered, as none of the key levels were reached during yesterday’s session.
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 1.2951 or 1.3020.
Put 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2894.
Put 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 if the price could get established above 1.3015 or so then that would be a very bullish sign. However, as we had major data releases for both currencies, I warned that movement could be unpredictable. This wasn’t a bad call as the high was capped close to 1.3015 at about 1.3020. The day ended dominated by a strong U.S. Dollar, but it was notable that the Pound fell less than did the Euro and the Japanese Yen, so the Pound has a little relative strength. This means that if there is a counter-trend movement against the U.S. Dollar today, it is quite likely to be expressed here in the Pound. Technically, the major level to watch will probably be the resistance at 1.2951. If the price gets established above it, then we would be likely to see more of a recovery. However, it will be important to be very careful in taking any trades against the U.S. Dollar in the current environment. The trend is certainly bearish.
There is nothing important due today concerning either the GBP or the USD.