GBPUSD: More bullish above 1.3200
Yesterday’s signals were not triggered, as there was no bearish price action when 1.3110 was first reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 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 1.3110 or 1.3057.
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 Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3305.
Put 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 yesterday that the price was a little more likely to fall than rise. Therefore, I thought that a short trade from a reversal at 1.3110 was likely to be the best opportunity but I noted also the lack of strong direction. This wasn’t a great call as the price rose over the day and broke up beyond the nearest resistance level.
The picture is now more bullish and at the time of writing the price is threatening to break above both the resistance level at 1.3194 and the round number just above it at 1.3200, however the earliest indication is that the level seems to be holding.
It now seems probable that 1.3200 is going to be pivotal today, and the direction will probably be determined by whether the price will break it or not. If we see two consecutive hourly closes above 1.3200 during the first half of the London session, I would take a bullish bias here for the rest of the day.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.