Yesterday’s signals were not triggered, as there was no bullish price action at 1.2959.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 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 1.2877.
- Put 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 Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2959 or 1.3005.
- Put 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 I thought that a break below the next support at 1.2959 would be a really significant bearish sign, so that would probably be the next important pivotal level. I was ready to take a bearish bias if the London open saw a strong downward movement to new lows, at least until the support at 1.2959. The price in fact rose first as London got underway, before turning around and falling sharply from 1.3020. The break below 1.2959 has happened and has made the situation here significantly more bearish. The short-term price action is also bearish. If we get a new low from the hourly close at 9am London time on above-average volatility, I would take a bearish bias to at least 1.2877, and also following a strong bearish reversal after a retrace to 1.2959.
There is nothing important due today concerning either the GBP or the USD.