Last Wednesday’s signals were not triggered as the price was already below 1.3041 by the time London opened.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken 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 1.2963.
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 Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3041 or 1.3081.
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 last Wednesday that the price was currently quite becalmed within a narrow band between support and resistance, with bulls and bears very evenly matched. I thought it was wise to stand aside until direction became clearer. This happened more quickly than I thought, with the price breaking below the support level I identified at 1.3041, which then was clearly flipped to become new lower resistance over recent days.
This creates a more bearish picture, but this pair is best described as within a long-term range, with no real long-term trend. This means that the best approach to trading this currency pair will most probably be fading rejections of price extremes and taking relatively conservative profit targets.
There is nothing important due today concerning either the GBP or the USD.