Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm London time today only.
Short Trade Ideas
Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2301 or 1.2515.
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 ride.
Long Trade Idea
Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2139.
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 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 Thursday that as the Pound was one of the relatively stronger major currencies right now, I was still happy to take a long trade from a bounce at the support at 1.2301, but I did see still a strong possibility of a breakdown if stock markets began to drop strongly later.
As it turned out, none of the levels were reached that day.
The picture now is slightly more bearish as the price seems to have got established below 1.2300 which is now likely to act as resistance, although the short term price action today does suggest the price is quite likely to break back up above that level.
There is no strong trend here so the best approach to trading this currency pair is likely to be waiting to see what happens if 1.2300 is reached, and to either take a short trade on a short time frame if the level is rejected, or to trade a bullish breakout above the level on bearish retracements, also on a short time frame. I think overall movement is likely to be little here today.
There is nothing of high importance scheduled for today concerning either the GBP or the USD.