GBPUSD: Weakly bullish above 1.2920
Last Thursday’s signals were not triggered, as neither of the key support and resistance levels were reached yet.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2920.
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.
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 Idea
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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 I preferred to leave this pair alone over the day as we were far from any key levels, but I thought that the price was more likely to end the day higher than lower from where it was at the start of the London session. This was an OK call, as it did.
It was last Thursday’s price action that revealed the new higher support level at 1.2920. This is a weakly bullish development and as long as the price holds above it, the picture looks weakly bullish. I would be prepared to take a careful long trade if we get a bullish bounce off that level during the first half of today’s London session.
The U.S. Dollar seems to be weak, and the British Pound is likely to strengthen if opinion polls continue to be released showing strong polling leads for the governing Conservative Party in the British election campaign which will end on 12th December.
There is nothing of high importance due today concerning either the GBP or the USD.