Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am 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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2733 or 1.2699.
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 Thursday that the price was in a weak bullish channel-type structure, as could be seen in the price chart below, but the bullishness looked very weak.
I was ready to take a bearish bias if the price traded below 1.2600 for a couple of hours, but it never did.
The picture is now clearly more bullish technically, with the price breaking above the area of former resistance at 1.2700 and trading within a more clearly defined and symmetrical bullish channel. The price has just printed a higher “stairstep” support level at 1.2733 which is a bullish sign.
The Pound is not particularly strong, but the U.S. Dollar is lower almost everywhere. It would be better to be bullish than bearish here, but the price may not rise much further today. The support at 1.2733 is likely to be today’s pivotal level. I would take a bullish bias if the price made a strong bounce there again, or if the price gets established above the upper channel trend line shown in the price chart.
There is nothing of high importance due today concerning either the GBP or the USD.