Yesterday’s signals were not triggered, as there was no bearish price action at 1.4330.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4435.
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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.
Long Trades
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4297 or 1.4221.
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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.
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 I was keeping a bullish bias, as it looked like the strong long-term trend in this pair was going to continue. This was absolutely right, with the price moving strongly up to the resistance level at 1.4330 which broke down after a few hours of weakly holding. At the time of writing, the Pound is making new high prices that have not been seen since the day of the Brexit referendum almost two years ago. Bullish, bullish, bullish – trading in “blue sky” is usually a sign that the move is likely to run further. The new support level confluent with the round number at 1.4300 looks especially attractive for a long trade entry.
Concerning the GBP, there will be a release of Average Earnings Index data at 9:30am London time. Regarding the USD, there will be a release of Building Permits data at 1:30pm.
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