Yesterday’s signals were not triggered as there was no bearish price action when 1.2915 was first reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm 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 1.3023 or 1.3079.
- Place 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 1.2904 or 1.2785.
- 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 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 we seemed to have what looked to be a pivotal point at 1.2915 and a medium-term bullish trend. If we had gotten two consecutive hourly closes above 1.2915, ideally early in the day’s London session, I was happy to take a bullish bias.
Unfortunately, we did not get two closes above 1.2915 until after the end of the London session. The price is higher now than it was 24 hours ago, so I was looking to the correct price direction.
The technical picture has become more bullish now, with the former resistance at 1.2915 invalidated and the price pushing up above the two new higher support levels which have printed in the same area.
It looks as if the price will probably continue to rise today to again test, or at least get very close to, the big round number at 1.3000 which acted as strong topping resistance when it was last reached.
I am prepared to take a long trade from a bullish bounce at 1.2929 or a short trade from a bearish reversal at either 1.3000 or 1.3023, whichever happens first during today’s London session.
There is nothing of high importance due today regarding either the USD or the GBP.