Last Wednesday’s signals were not triggered, as there was no bullish price action at either 1.4297 or 1.4221.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4037 or 1.4118.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3983.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
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
Last Wednesday I took a bullish bias, but I noted there would be a release of British inflation data shortly, which could strongly affect the price and will overpower technical factors if the number is off from consensus expectations. The number was lower than had been expected, which reduced the prospect of a rate hike in the near term, which in turn sent the Pound tumbling. The renewed strength in the U.S. Dollar was also felt, as well as the increasing talk by U.K. politicians close to power that the U.K. will leave the Customs Union. These factors have made this pair fall heavily, slicing through all the support levels that have been reached, with the key psychological level at 1.4000 just barely holding. The long-term upwards trend is still intact, and this pair often bounces back after a few days following such strong falls. The support level at 1.3983 is likely to be very important. If that breaks down, it will be a very bearish sign and suggest that the long-term trend has a serious chance of reversing soon.
There is nothing due today concerning either the GBP or the USD.