Last Thursday’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 may only be taken between 8am and 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3161 or 1.3094.
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.
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.
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 it seemed less likely that the price would rise again today, although there was definitely a medium to long-term bullish trend in the Pound. We may require a retracement, and in any case, the Dollar may strengthen if the U.S. GDP data is especially positive when it is released later.
This was a good call as the Pound, despite the strong recent bullishness and new highs in this pair, was unable to rise, and traded down gently towards the 1.3250 area over the course of that day. The price continued to fall on Friday and has now reached relatively close to the nearest support at 1.3161. Despite the sell-off, there are still reasons to be confident in taking a bullish bias here once the price begins to rise strongly again, provided that the support level at 1.3161 continues to hold. I would take a bullish bias here is the price is trading above 1.3300 at 9am London time. However, I think a further gentle fall or a consolidation period are more likely outcomes.
There is nothing of high importance due today concerning either the GBP or the USD.