Yesterday’s signals were not triggered as none of the key levels were hit during the London session.
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 1.3094.
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 1.3273.
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 despite the sell-off, there were still reasons to be confident in taking a bullish bias here once the price began to rise strongly again, provided that the support level at 1.3161 continued to hold. I said thought that a further gentle fall or a consolidation period were more likely outcomes. This was a good call as the price continued to fall gently through the day, invalidating the support at 1.3161 during the Asian session. It looks more likely that the price has peaked at 1.3350. Short-term direction now looks unpredictable, with the only potentially interesting set-up for today looking like a possible bullish bounce from 1.3094.
I take no directional bias on this currency pair today.
There is nothing of high importance due today concerning the USD. Regarding the GBP, the Governor of the Bank of England will be testifying before the British Parliament at 3:35pm London time.