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 must be taken before 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4193.
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.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4025.
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 Pound is still showing relative strength, holding up better against the U.S. Dollar than any other major currency. However, the price has been consolidating for several hours now just below 1.4150 so a bearish move today is possible, but the technical picture and overall situation remain bullish, so I would still look to profit on the long side here today if possible. Bulls should be a little worried if the price gets established below 1.4080, but the key benchmark is really the psychological level at 1.4000.
If the Yen remains relatively weak, the GBP/JPY currency cross is also likely to provide long trade opportunities.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of PPI data at 1:30pm London time.