Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
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 1.3657.
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Put the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trade
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Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3839.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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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
Yesterday I wrote that although the picture looked bullish, it might be best to stand aside for the day. The price moved up by about 50 pips as London opened, but then was more or less finished for the day. At the time of writing, it looks as if today may not see a great deal of movement either, although it is a little too early to make that call. There is certainly every reason to keep a bullish bias, although it is still true that the British Pound is less bullish than the Euro, with which its movements tend to be positively correlated. An additional bullish indicator is that the price made a new 18-month high yesterday, in line with the long-term bullish trend. The support at 1.3657 could be an interesting level for a buy if it is reached with a bullish reaction later today. The area around 1.3750 may also be supportive if reached.
There is nothing important due today concerning the USD. Regarding the GBP, there will be a release of CPI data at 9:30am London time.
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