Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Long Trade
- Go long at the next touch of 1.2828.
- Place 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
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2963 or 1.3005.
- Place 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 we did not have a clear long-term trend in this pair and the support above 1.2800 was still providing a bid. It did still look as if the line of least resistance was downwards, but I would still prefer to be short of EUR/USD rather than GBP/USD.
As it happened, the price moved little yesterday, and the price has failed to break above the bearish trend line. If the short-term downwards movement persists over the first hour of the London session on at least slightly above-average volatility, I would take a cautious bearish bias. Yet I note there is no real trend here, so action can be messy and direction relatively unpredictable – EUR/USD seems to be moving more smoothly right now.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.