Yesterday’s signals may have produced a nicely profitable long trade from the bullish bounce at 1.3023, although it looks like the time has probably now arrived to exit from any remainder of this position still held.
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 1.3217.
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 1.3023.
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 that short-term price action was bearish, so we may get a bearish retracement over the coming hours. This was a good call, but I also thought that the time was probably not yet right to be entering any trades at all. There was more price movement over the day than I had expected. The British Pound remains relatively bullish and so if the U.S. Dollar weakens we can expect further rises. The support levels above the psychologically important level of 1.3000 held nicely yesterday. The short-term price action suggests a bearish retracement. If the price turns bullish and can get established above the recent highs at about 1.3133, I would take a bullish bias later today.
There is nothing important due today concerning either the GBP or the USD.