Yesterday’s signals were not triggered, as none of the key levels were 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 1.3094.
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 1.3188.
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 this pair looked like it would 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. The price was never reached, instead the Pound strengthened slowly but solidly, and the price now seems ready to test 1.3188. Despite its recent retracement against the Dollar, the Pound remains a relatively strong currency, so if the Dollar starts to sell off, we could well see a strong rise here. If the Bulls can make a strong move up so that by 9am London time the price is trading from at least 1.3220 I would take a bullish bias until the ECB input later, which could drag the Pound anywhere by causing a strong movement in the Euro.
There is nothing of high importance due today concerning either the GBP or the USD.