GBP/USD: Breakout beyond 1.2515
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 between 8am and 5pm London time today.
Short Trade Idea
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2624.
- 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.
- Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Long Trade Idea
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2537.
- Put 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 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 although this bullish move above 1.2515 may be short-lived, it seemed to signify that the bulls had the upper hand for now, so I would be happy to take a long trade. Support was not reached but my bullish approach was correct as the price has continued to rise over the past 24 hours.
This currency pair has the most directional movement of any major currency pair, still in the bullish direction with a new higher support level printing at 1.2537.
I am still bullish and if the price can make an hourly close later above 1.2575, I would enter a long trade and stay bullish until either the New York close or until the price reached 1.2624.
The U.S. Dollar is weak everywhere, but it is hard to see a good reason for the relative strength in the British Pound we see right now.
There is nothing of high importance due today concerning either the GBP or the USD.