GBP/USD: Significant new higher support at 1.2531
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8 am and 5 pm 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 1.2613 or 1.2670.
- 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 25 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2531, 1.2437, or 1.2406.
- 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.
- Remove 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 the day’s likely pivotal point seemed to be 1.2437, so I was ready to take a long trade at a bullish bounce there.
The price remained above that level, but it was a good call to see it as pivotal as the continuing advance took place without the price breaking below it at any time.
We see a considerably more bullish technical picture now and the British Pound is behaving as one of the strongest major currencies.
The break above 1.2550, even though it has not been sustained yet, and the new higher support level at 1.2531, are significant bullish signs pointing to a further rise in the price as likely to happen over the short term.
Technical factors and market sentiment remain very important drivers in the absence of any key data releases for the British Pound or the U.S. Dollar.
I will be happy to enter a long trade today from a bullish bounce at 1.2531.
There is nothing of high importance scheduled today regarding either the GBP or the USD.