Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2842.
- 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 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3016.
- 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 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
The British Pound has firmed up over the past week or so, being bought as it approached its support level at 1.2842 after making a strong U-shape below that earlier. Volatility is relatively low but that could change this morning as it is likely to be one of the more traded pairs during the London session, as there is a key economic data release due. The short-term line of least resistance definitely looks bullish, but the pair is still likely to be held by the resistance above which starts to take effect at the key psychological round number of 1.3000.
Technically, there is still a long-term bullish trend, and a break above 1.3016 would probably put new life into it, but I see this as unlikely to happen today.
There is nothing due today concerning the USD. Regarding the GBP, there will be a release of Construction PMI data at 9:30am London time. It is a public holiday in the U.S.A.