Yesterday’s signals were not triggered as the bearish price action took place a little way above the resistance level identified at 1.2478.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2436 or 1.2374.
Put 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 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2610.
Put 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 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
This pair has quite a lot of bullish momentum since there have been increasing signs of a British rate hike, although the longer-term charts are not clearly suggesting further price rises. The price is above its level of 3 months ago, which is usually a sign of the prevailing direction with this pair. We have also seen several resistance levels broken, and more support levels created.
There is no obvious end to the bullish run, but the price has recently just touched the 1.2500 level which may have a psychological impact and halt or even reverse the recent rise.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Crude Oil Inventories at 2:30pm London time.