Yesterday’s signals were not triggered as neither of the key levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2610.
- 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 1.2831.
- 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
The price has become less volatile and is making medium-term turns before it reaches any key levels. Currently, it looks as if it probably going to fall further during today’s London session, which would fit the bullish USD sentiment following yesterday’s rate hike by the Federal Reserve.
The difficulty in making sense of the Pound now is that on the one hand, the weak British government will probably weaken the Pound, but the resulting increased prospect of a “soft Brexit” will tend to strengthen the Pound, so it is difficult to know which will prevail. Market sentiment may get some guidance from the Bank of England’s input today.
Concerning the GBP, there will be a release of Retail Sales data at 9:30am London time, followed by the Bank of England’s Monetary Policy Summary, Votes and Official Bank Rate at Noon. The Governor of the Bank of England will be speaking at 9pm. Regarding the USD, there will be a release Unemployment Claims data at 1:30pm.