Last Thursday’s GBP/USD signals were not triggered, as the bullish price action at the support level which was reached did not happen until after the end of the London session.
Today’s GBP/USD Signals
Risk 0.75%.
Trades may only be entered before 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 1.3667 or 1.3759.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 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 1.3527, 1.3502, 1.3437, or 1.3411.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 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 last Thursday that although it had become less bullish, the technical picture still suggested that a long trade from 1.3551 could work out well, but I thought it was probably wisest to stand aside and wait for either a bullish breakout beyond the resistance at 1.3667 or a bearish breakdown below 1.3527 before taking any bias on this currency pair.
This was not a bad call, as we did get a minor bullish movement which originated from the 1.3551 area that day. The price remained within the range I outlined for the remainder of last week.
We have seen the price break below the lower boundary which I had identified at 1.3527, then continue to fall to 1.3450 from where it has made a firm bullish reversal.
Despite the short-term bullishness of the price action and the long-term bullish trend, the price is well contained within a symmetrical bearish price channel over the medium term, which is a bearish sign. The upper boundary of this channel is currently confluent with the round number at 1.3600, so a bearish reversal there would be an excellent opportunity for a long trade entry.
There is nothing of high importance scheduled today regarding either the GBP or the USD.