Yesterday’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 taken between 8am and 5pm London time today.
· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3332 or 1.3286.
· 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 entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3456.
· Put the stop loss 1 pip above the local swing high.
· Adjust the stop loss to break even once the trade is 20 pips in profit.
· Remove 50% of the position as profit when the price reaches 20 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.
I was right yesterday in expecting the key levels and trend lines in the chart to hold. There is no long-term trend in this currency pair, and I have no directional bias. It is interesting that the Pound fell yesterday while the Euro rose, it suggests continuing weakness in the Pound as the weak British Government’s political troubles remain endless. There is no long-term trend, so continuing to trade rejections of the key levels shown in that chart below should continue to be a profitable trading approach. This pair still has high volatility, making it attractive to traders. I have no directional bias today.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Final GDP data at 1:30pm London time.