Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am New York time 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 1.2959.
- 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 Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3005 or 1.3073.
- 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 last Thursday that the long-term action was starting to look bearish, with the price in a consolidating triangle and looking heavy, so it seemed that the more likely outcome was an eventual break below 1.3000 and 1.2959. I was correct about 1.3000 and I was correctly bearish below that level, but the price has not really fallen any further since that break happened on Thursday.
The chart below makes it obvious that there is a bearish trend, but the Pound is still tending to be bought below 1.3000. However, I think a break below the next support at 1.2959 would be a really significant bearish sign, so that will probably be the next important pivotal level – although we are not likely to see much price movement here today as it is a public holiday in the U.K. today.
There is nothing important due today concerning either the GBP or the USD, and it is a public holiday today in the U.K.