Yesterday’s signals produced a long trade entry following the bullish engulfing candlestick which rejected the support level at 1.3456. This trade would still be open and in profit but as the price is currently testing the new higher support at 1.3527, it will probably be wise to move the stop loss to break even now on any part of the trade still open.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trade
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3601.
-
Place the stop loss 1 pip above the local swing high.
-
Move the stop loss to break even once the trade is 25 pips in profit.
-
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
-
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3456.
-
Place the stop loss 1 pip below the local swing low.
-
Move the stop loss to break even once the trade is 25 pips in profit.
-
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 I saw that the next test which would tell us something about this currency pair should come when the price reaches 1.3527. If there was a clear and strong bearish reversal there, things may become more clearly bearish. The price in fact easily broke strongly above the level, before falling back. The level may now become support, but it looks weak. So overall, there is no likely change to the technical picture, which is a wide-ranging consolidation pattern between about 1.3450 and 1.3600. Best results are likely to come today from trading any reversals at those extremes which might occur. I have no directional bias.
There is nothing due today concerning either the GBP or the USD.
Recommended Content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting
The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.