Last Monday’s signals were not triggered, as there was no bearish price action at 1.2703.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am New York time 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 1.2918.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2694.
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 last Monday that 1.2700 looked like the pivotal area and I seem to have been right about that. This pair now looks more bullish as the price has broken above the long-term bearish trend line shown in the price chart below and produced new support also at 1.2694. Furthermore, there is no resistance until 1.2918 so there is lots of room for the price to rise.
For these reasons, I would take a bullish bias above 1.2700, but liquidity in the Pound is very thin due to it being a public holiday in the U.K. today so I would wait until tomorrow before looking to open any trades here. Possibly some long scalps from bullish bounces at 1.2700 or 1.2694 would be the best opportunity later which might set up.
There is nothing important due today concerning either the GBP or the USD. It is a public holiday in the U.K. today, so liquidity is likely to be very thin.