Yesterday’s signals were not triggered, as there was no bullish price action at 1.3124.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 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 1.3088 or 1.3018.
Put 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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3178 or 1.3226.
Put 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
This is the most interesting of the major Forex pairs, with a high level of volatility but also clean swings in price which are tradable if you can go with the “flow”. The former support has been invalidated, but a new lower level of support has been established at 1.3088. There is still a very long-term bullish trend in force – barely – yet there is a very wide, medium-term bearish price channel which still contains the price. The price really needs to get established above 1.3178 or even 1.3226 before it is possible to be strongly bullish. The best approach is to trade the swings and turns near the key levels and be prepared to go wherever the price takes us.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.