GBPUSD: Strongly short-term bullish above 1.2750
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 must be entered between 8am and 5pm London time today only.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2728.
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.
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
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.
Take off 50% of the position as profit when the price reaches 20 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 upwards movement over the day had been very strong, with several key resistance levels being breached quite easily. Although it was against the long-term bearish trend, it would not be a great surprise if the price continued to rise to test the psychological big quarter-number at 1.2750. This was a good call as the price has continued to rise and now seems to be exceeding the big psychological number at 1.2750 quite easily. In late Asian session trading, the Pound is also rising more firmly than the Euro, which has made a bullish breakout to a new long-term high, which is another bullish sign.
I take a bullish bias on this pair today if it closes at a new high at 9am London time on above-average volatility.
There is nothing of high importance due today regarding either the GBP or the USD.