Yesterday’s signals were not triggered, as none of the key levels were hit within the specified time.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3350.
-
Put 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 Trades
-
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3183 or 1.3128.
-
Put 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.
GBP/USD Analysis
I wrote yesterday that there was good bullish momentum here, and I was bullish above 1.3127, expecting a rise to at least 1.3217 as quite a likely scenario today. This was a great call, as the price continued to rise, remaining above support, and reached even beyond the level which I identified as a target at 1.3217.
There is good bullish momentum here and no obvious resistance until 1.3350, so there is room for the price to rise further without meeting friction, although there is a psychological level at 1.3250. I would take a bullish bias if the price can break above that area, but I would remain generally bullish above 1.3183 and a little bullish above 1.3128.
The thing to watch out for today is the U.S. inflation data due later. The Dollar is currently weak, and the Pound has been boosted by positive comments coming from the European Union on the Brexit deal.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.