GBPUSD: More bullish above 1.3136
Last Thursday’s signals were not triggered, as there was no bearish price action when the resistance level identified at 1.2972 was reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trade Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3062.
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.
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.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3136, 1.3175, or 1.3235.
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.
Take off 50% of the position as profit when the price reaches 20 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 last Thursday that the technical picture remained bearish below the resistance level at 1.2972. I was ready to take a cautious bearish bias if the price again rejected the resistance at that level.
I was on the wrong track and this call was not useful.
The price has continued to rise and is currently looking much more bullish as it continues to print new higher support levels, most notably at 1.3062. The resistance at 1.3136 may have some strength, so if the price can get established above that level early in today’s London session, it would be likely to rise further and have an up day.
The real strength is in the Euro, which is dragging up the Pound as a knock-on effect.
I take a bullish bias if the price can make two hourly closes above 1.3136 during the first half of today’s London session.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of Chicago PMI data at 2:45pm London time.