GBPUSD: Ranging between 1.3057 and 1.3110
Last Tuesday’s signals were not triggered, as there was no bearish price action at any of the resistance levels which were hit that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trade Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3057.
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 Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3110 or 1.3194.
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 Tuesday that we were likely to see the price range between 1.3062 and 1.3143. I was wrong, there was actually a bullish move that day which was quite strong and managed to push the price briefly above 1.3143.
Market sentiment has now changed to a risk-off story, and neither of these currencies are really in focus. However, it is likely that the USD will be somewhat stronger than the GBP now, so the price is a little more likely to fall than rise. Therefore, a short trade from a reversal at 1.3110 is likely to be the best opportunity that may arise today, but we do not have strong direction so it may be that both nearby support and resistance levels hold over the day.
There is nothing of high importance due today regarding either the GBP or the USD.