Yesterday’s signals were not triggered as the bullish price action took place below 1.4216.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered from 8am to 5pm London time today.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2346.
Place the stop loss 1 pip below the local swing low.
Adjust 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 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2610.
Place the stop loss 1 pip above the local swing high.
Adjust 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
This pair is still near the middle of both its long-term and short-term ranges, but has broken below a new level just below 1.2500 which might remain resistant. If the price gets above that level, it will probably stay consolidating close to its current price. If the price fails in breaking up above 1.2500, it will have a slightly bearish bias.
There is nothing due today concerning the GBP. Regarding the USD, there will be releases of Building Permits, the Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm London time.