Yesterday’s signals were not triggered, as there was no bearish price action at resistance.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2918.
- 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 1.2805.
- 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 the technical picture remained bearish as long as the descending trend line held. This didn’t happen, and then alter when the Chair of the Fed hinted there would be less rate hikes, we saw everything strengthen against the U.S. Dollar, shifting both the fundamental and technical picture here on this pair. The price has broken above the bearish trend line. However, the move here is relatively unconvincing, as the British Pound remains one of the weakest major global currencies. This means that if the U.S. Dollar starts to fall again, it will probably do well here.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.