Yesterday’s signals were not triggered, as neither 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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 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 1.3188.
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 yesterday that the short-term direction now looked unpredictable, with the only potentially interesting set-up looking like a possible bullish bounce from 1.3094.
The price has continued to sell off, with European currencies all weak while the U.S. Dollar is remaining strong. So, the Pound is declining despite its recent long-term highs that were reached last week. It looks like it will drift lower and possibly test the support at 1.3094. That is a very key level and a bullish reversal from it, or a strong bearish break below it, should be very significant. I would take a bullish bias if there is a strong bullish bounce there.
There is nothing of high importance due today concerning either the GBP or the USD.