Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3044.
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 1.3350.
Place 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.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3063.
Place 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.
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 a strong fall over today was quite possible if 1.3044 was broken down but I was wrong about that, although I was correct to forecast generally high volatility.
The British Pound is looking like the strongest of all the major global currencies right now with quite a firm upwards trend, and there are no key resistance levels ahead until 1.3350. That suggests that looking for long trades here as the London session gets underway is likely to be a good idea. The area at 1.3135 may also be new higher support.
There is nothing of high importance due today regarding the USD. Concerning the GBP, the Governor of the Bank of England will be giving a minor speech at 2:30pm London time.