Yesterday’s signals were not triggered, as there was no bearish price action at 1.3000.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be taken between 8am and 5pm London time today.

Long Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.

  • 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.

  • 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

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3161.

  • 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.

  • 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 there was no change to the technical picture due to the trend lines holding and the market remaining relatively quiet. I thought that we may see movement due to U.K. data and any possible political developments there over Brexit. However, I also saw the line of least resistance as downwards.

This wasn’t such a good call, as very positive British economic data caused the price to rise very strongly and break clearly above all the trend lines and the psychologically important 1.3000 level. The price now seems to have settled at about 1.3050 and this is a bullish sign though we are still a couple of hundred pips or so off the highs of recent days and weeks.

It is hard to say where the price will go over the short-term, but the line of least resistance now looks to be upwards, so the bulls seem to have an edge. I would be bullish if the price is trading at or above 1.3100 at 9am London time, at least until the next resistance level at 1.3161 is reached.

GBPUSD

There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.

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