GBPUSD: Still bullish above 1.2195
Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.2259.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2252 or 1.2195.
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 Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2364.
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 yesterday that the level at 1.2195 looked like being today’s true pivotal point. I was ready to take a bullish bias if we had gotten a healthy bounce there.
I was correct to be bullish, and this level at 1.2195 held (it was not even reached), so this was a reasonably good call.
The picture is still bullish, and this is an anomaly, as it is against the long-term bearish trend in the Pound and the relative strength which we are seeing generally in the U.S. Dollar.
This suggests that the bullishness is meaningful. I see the situation here as bullish going forward provided that the level at 1.2195 continues to hold. If 1.2252 holds also, that would be even more bullish.
I would take a bullish bias following a firm bounce at either of the nearby support levels.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.