Last Thursday’s signals were not triggered as none of the key levels were reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5 pm London time today.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3023 or 1.3079.
- 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.
- 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 Trade Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2906 or 1.2785.
- 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.
- 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 last Thursday that the price was likely to drift above 1.2900 until the New York open.
I was equally happy to take either a long trade from any bullish bounce at a key support level or a short trade from a bearish reversal at 1.3023.
This was not a great call over the short-term as the price turned bearish that day as soon as the London session opened. However, my basic expectancy that the price would probably move sideways was correct.
We see the price currently holding above what looks like very weak support just a little above 1.2900.
There is no long-term trend, but the EUR/USD currency pair is looking a little more bearish, which suggests it would not be a surprise if we see the price here turn bearish later and break down below 1.2900 and perhaps reach 1.2785.
However, if the price keeps making a bullish rejection of 1.2906 during the first hour or two of the London session today, that will suggest we are likely to see somewhat higher prices, though there may be resistance at 1.2950 which continues to suppress the price.
There is nothing of high importance scheduled today concerning the GBP. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3 pm London time.