Last Thursday’s signals were not triggered, as there was no bullish price action at 1.2805.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2805.
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 the trend line currently sitting at about 1.2680.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
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 Thursday that the price had broken above the bearish trend line but that the bullish move was relatively unconvincing, as the British Pound remained one of the weakest major global currencies. This was a good call and the Pound still looks like the weakest currency although the Dollar is falling so convincingly that even the Pound is rising healthily over the past few hours. If the Dollar regains its strength, we can expect it to gain against the British Pound. A sustained break above 1.2820 would be a surprise and a significant bullish sign technically. I would take a bearish bias if the price makes a decisive bearish turn from 1.2805 to 1.2820.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.