Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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 1.3000.
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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3161.
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 that the picture now was more bearish, with the chart dominated by a medium-term bearish trend line which was holding the price down, and there were no key support levels until 1.3000. Absent any political news, it looked as if this pair was likely to continue to slowly fall over the course of the day. However, I saw that it may be dangerous to take short trades as the price was not far from 1.3000.
This was a good call and there is no change to the technical picture or analysis. The price fell a little, but the outlook is exactly the same as yesterday’s.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.