GBP/USD: Bullish above 1.3016
Yesterday’s signals were not triggered, as there was no bullish price action when 1.2925 was reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2980 or 1.3016.
Put 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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2886 or 1.2870.
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.
Remove 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 most interesting trade which might set up today would be a short trade from either of the two nearest resistance levels, as they were somewhat confluent with both this trend line and the big round number at 1.3000. This didn’t produce anything but was enough to keep out of trouble.
The technical picture now is more consolidative as we have a dominant consolidating, narrowing triangle pattern which is containing the price within a range.
I will take a bullish bias if we get two consecutive hourly closes above 1.3016, or a bearish bias if we get a convincing failure to break above the resistance level at 1.2980.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.