Yesterday’s signals were not triggered, as neither of the key price levels were ever 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 1.4092.
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 1.4330.
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 it was possible that the price might struggle to rise above the round number at 1.4200, but the current action suggested still higher prices, and an eventual retest of the key high at 1.4330. The price did rise, but has seemed unable to get established above 1.4200, with the bulls now looking as if they might have run out of momentum. Today’s direction looks hard to predict based upon recent price action. The long-term trend is bullish and support levels are holding, so there might be a good opportunity today or tomorrow for a long trade entry at a bullish bounce at 1.4092.
Regarding the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm.