Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.2858.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken 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 1.2920 or 1.2975.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 25 pips in profit.
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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
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2858 or 1.2818.
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Place the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 25 pips in profit.
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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 I would want to see the price firmly below 1.2951 at 9am London time and moving down over the short-term before taking a bearish bias. This was a good call, as it happened, and the price continued to move down all the way to 1.2858 where it seems to be finding support and may even be printing a double bottom. Despite that, the British Pound still looks relatively weak, and I would again take a bearish bias here if the price will be below 1.2858 at 9am London time today. This is in line with the clear long-term bearish trend.
The support at 1.2858 seems very likely to be the pivotal level today.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of PPI data at 1:30pm London time
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