GBP/USD Forex Signal
|Yesterday’s signals were not triggered, as there was no bullish price action at 1.3338.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today, over the next 24-hour period.
Short Trades
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3482 or 1.3521.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 25 pips in profit.
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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
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3300.
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Place the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 25 pips in profit.
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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.
I wrote yesterday that the action suggests that the price will fall further, but the high-impact data could push the price anywhere and override the technical picture. The price did fall further after the London open, but then bounced back. The FOMC release has changed the picture somewhat, making the outlook less bearish as the messy bearish channel pattern seems to have been disrupted and broken, while the action at the time of writing is certainly bullish. However, the price is still stuck within a wide range with no key levels, and we have crucial British economic data being released again today, so for these reasons I have no directional bias today. The price action is liable to remain messy and worth avoiding over the short term.
Concerning the GBP, there will be a release of Retail Sales data at 9:30am London time. Regarding the USD, there will be a release of Retail Sales data at 1:30pm.
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