GBP/USD: New 1-year high price
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 must be entered before 5 pm London time today only.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3286 or 1.3305.
- 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.
- Take off 50% of the position as profit when the price reaches 25 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 1.3180 or 1.3134.
- 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.
- Take off 50% of the position as profit when the price reaches 25 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 outlook was bullish over the short-term here, backed by the general bearish trend in the U.S. Dollar. However, bulls should beware of the recent infection area at about 1.3180 which could halt a stronger advance.
This was an OK call, but the price actually advanced much further after initially pausing, as I had suspected, at about 1.3180.
The British Pound had been notably weaker than the Euro, although both have been advancing against a weak U.S. Dollar. That changed yesterday, however, with the Pound rising further than the euro. The price of this currency pair closed yesterday at a new 1-year high.
All the signs are bullish, and we have not yet seen a single support level break. The price is currently making a bullish consolidation above the support level identified at 1.3229. If this level holds, the price is likely to advance later today to the next resistance level at 1.3286. If the price can break above 1.3305, it could rise higher still.
I will take a bullish bias today if we get a bullish bounce following a bearish retracement to either 1.3229 or 1.3180.
There is nothing of high importance due today regarding either the GBP or the USD.