Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3657.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3839.
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
Yesterday I wrote that today may not see a great deal of movement, but the situation was still looking bullish. The area around 1.3750 might also have been supportive if reached. This is how the day played out. We saw the price get very close to the key resistance level at 1.3839 before falling off during the Asian session. The price action of the Asian session so far as at the time of writing suggests that we are going to see a day of consolidation with unpredictable direction, with the price probably being limited by 1.3725 below and 1.3839 above. The major direction looks difficult to predict, but there is definitely a long-term bullish trend, so I maintain a bullish bias. If the price breaks below 13725, further move down to the next support level at 1.3657 would look likely.
There is nothing important due today concerning either the GBP or the USD.