Yesterday’s signals were not triggered, as there was no bullish price action at 1.4092 and insufficiently bullish price action at 1.4058.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3917.
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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4092.
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
I wrote yesterday that I still had a bullish bias, and there was no reason not to remain bullish provided the price remained above 1.4000. The past 24 hours has seen the situation for bulls deteriorate further, with the price falling very close to 1.4000 and print a new resistance level on its way down at 1.4092. This means that the pair is at a very pivotal point, this could either be a major low or we could see the price break below 1.4000 and continue down to the next key support level at 1.3917. There are only two things to be sure of: this pair is at the heart of the market with the highest volatility, so is attractive to trade, and there is a long-term bullish trend, so upward movements when successful are likely to be more powerful. My directional bias depends upon when happens at or very close to 1.4000 after London opens.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Concerning the GBP, the Governor of the Bank of England will be testifying before Parliament at 3:30pm.