Yesterday’s signals were not triggered, as none of the key levels identified were reached during yesterday’s London session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3258, 1.3320, 1.3370, 1.3402, or 1.3434.
Place the stop loss 1 pip above the recent 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 Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3079.
Place the stop loss 1 pip below the recent 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 the price was currently in the middle of a fairly wide technical range between the nearest support and resistance levels, so I thought that a reversal at either 1.3079 or 1.3258 could be a good trade.
I noted the long-term bullish trend, so trading long from a bullish bounce at 1.3079 was likely to be the best potential trade set up.
This was a fairly good call as the price has continued to break to new long-term highs and is currently trying to break above the resistance level at 1.3258.
The pound is relatively strong, while there is persistent weakness in the USD, so the pair is well positioned to keep rising if it can break up above 1.3258 as it reaches new multi-month high prices and keeps the bullish trend going.
I will take a bullish bias if we get two consecutive hourly closes above 1.3258.
There is nothing of high importance due today concerning either the GBP or the USD.