GBPUSD: More bearish but 1.2822 strong support
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trade Ideas
⦁ Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2822, 1.2799, or 1.2767.
⦁ Put 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.
⦁ Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trade Ideas
⦁ Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2912, 1.2925, or 1.2943.
⦁ 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 technical picture had become more evenly balanced between bulls and bears – the price had been holding in a range between about 1.3000 and 1.2750 for a few weeks. However, I generally preferred long trades from bullish bounces at key support levels.
As it happens, the price has fallen somewhat as the U.S. Dollar strengthens everywhere. Nevertheless, the strong support level I noted before at 1.2822 continues to hold and that could be an interesting level for a long trade entry.
I am generally looking for short trades near 1.3000 and long trades near 1.2750 as the price remains ranging within this area, so the closer to 1.2750 we get a bullish bounce at a support level, the better – and I will take a bullish bias when we get such a bounce.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of Chicago PMI data at 2:45pm London time.