Last Thursday’s signals produced a losing long trade from the bullish outside candlestick on the hourly chart which rejected the support level at 1.2828.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm London time today only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2697 or 1.2618.
Place 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 ride.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2828.
Place 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 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 this currency pair was now looking even more bearish as it made new multi-month lows below the key support level at 1.2828. This was a good call as being bearish below that level once it broke down was a profitable stance.
The Pound now looks slightly more bullish than the Euro, but overall this pair still looks bullish and the odds are still in favour of stronger movement downwards than upwards. I am bearish below the psychological level at 1.2750 at least until 1.2700 where support may be felt today.
There is nothing important due today concerning either the GBP or the USD.