Yesterday’s signals were not triggered as there was no bearish price action at 1.2923.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2828.
Put 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.
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.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
Put the stop loss 1 pip above the local swing high.
Adjust 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 there should still be some medium-term bearish pressure weighing the price down, but if the price could get established above 1.2923 as the London session got underway, that would be a mildly bullish sign. It was likely to be the day’s pivotal level. That wasn’t a bad call as the price spiked above it but immediately reversed back below, and then continued to move down, o the level was pivotal.
The medium-term bearish trend continues, and the Pound is now looking weaker than the Euro, which is a bearish sign for this pair. I see the support at 1.2828 as likely to be the pivotal level today and would take a bearish bias if the price trades below it for a couple of hours.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be releases of Retail Sales and PPI data at 1:30pm London time.