Yesterday’s signals were not triggered, as there was no bearish price action at 1.3456.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
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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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 1.3400 or 1.3348.
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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.
GBP/USD Analysis
I wrote yesterday that as the British Pound was looking very weak, I was comfortable taking a bearish bias below 1.3400. The price never broke below 1.3400, instead popping up above the nearest resistance level in a classic stop run movement, before falling back down again to resume its test of the support at 1.3400. The price looks quite weak, so I am again anticipating a break below 1.3400, and would be bearish below that level, as the long-term charts strongly point towards further downwards movement over the short-term. Note that this pair is more bearish than EUR/USD.
Concerning the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm, followed by the FOMC Meeting Minutes at 7pm.
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