Last Thursday’s signals were not triggered, as 1.3381 was never reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Long Trades
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3381, 1.3337, or 1.3286.
· 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.
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 pair rose steadily last week in line with its long0term bullish trend. However, this move seems to have peaked at 1.3550, with the chart below showing a bearish double top become a fast Quasimodo / over & under pattern turning bearish. The price has continued to fall since this week’s open, and is now threatening to break below the highest key support level at 1.3433 which I have removed from consideration as good potential support today. The action points to lower prices once London opens, but there are several support levels on the way down which could hold up the price, so I doubt there will be a very strong bearish movement happening quickly.
Regarding the GBP, there will be a release of Construction PMI data at 9:30am London time. There is nothing important due today concerning the USD.