Yesterday’s signals were not triggered as none of the key levels 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 1.3228, 1.3250, 1.3320, or 1.3370.
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 Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3141 or 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 that bulls still had to overcome an area of resistance confluent with the major psychological quarter-number at 1.3250. I was ready to take a long trade if we had gotten two consecutive hourly closes above 1.3250 during the first few hours of the London session, but this did not set up. I was correct to see this area as pivotal as there was a bearish failure as soon as the price got anywhere close to it.
I am less bullish on this currency pair today as we have seen mostly sideways, indecisive price action for several days now. Again, the area at 1.3250 does look pivotal and important, so waiting for the price to test that level and acting according to the result could continue to be a good trading strategy for this pair.
I am not very confident in the support level at 1.3141, I have much more faith that the level below that at 1.3079 would be likely to hold if tested today. I would take a long trade at a bullish bounce there.
If we get 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.
Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time. There is nothing of high importance scheduled today regarding the GBP.