Yesterday’s signals were not triggered as there was no bearish price action when either of the resistance levels at 1.3228 or 1.3250 were first reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm 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 1.3320, 1.3370, or 1.3402.
Put the stop loss 1 pip above the recent 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 1.3239 or 1.3141.
Put the stop loss 1 pip below the recent 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 if we got an hourly close above 1.3250 with rising prices over the short term during the first half of the London session, I think the price would be likely to continue up to 1.3320.
This was not a great call, but it was on the right track, as although the price has not risen by much since we got the hourly close above 1.3250 early during yesterday’s London session. However, it is rising, and the short-term price action suggests that the price is likely to move higher over the course of today.
The chart has become more bullish technically with no key resistance ahead until 1.3320.
The pound and euro are quite strong today, so I would be prepared to take a long trade if we get a retracement to the nearest support level at 1.3239 followed right away by a firm bullish bounce.
There is nothing of high importance due today concerning either the GBP or the USD.