Last Monday’s GBP/USD signals were not triggered as none of the key support or resistance levels identified were reached that day.
Today’s GBP/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3937 or 1.4010.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 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 1.3834 or 1.3767.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 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 last Monday that despite the fall in price, there was a valid long-term trend in force, and we were seeing the beginning of a bullish price movement that might push up to test 1.3934. However,
I was only seeking to enter a long trade following a bullish bounce after a retracement to the nearest key support level at 1.3834.
This was a pretty good call, as the price did rise over the day to hit a high just 1 pip below 1.3934. The price never retraced to 1.3834.
The technical picture has not really changed in any significant way. We still have a valid long-term bullish trend, and the price is being held down by the nearby resistance level which has been readjusted slightly to 1.3937.
I see a potential bullish breakout beyond 1.3937 as likely to trigger another bullish attempt at 1.4000. Therefore, following two consecutive hourly closes above that level today, I will take a bullish bias until at least 1.4000.
If the price can get established above 1.4010, that would be a very bullish sign. I see that level as extremely key resistance due to its confluence with the big psychological round number at 1.4000.
Concerning the USD, there will be a release of the ADP non-farm employment forecast at 1:15pm London time followed by ISM Services PMI data at 3pm London. There is nothing of high importance scheduled for today concerning the GBP.