Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
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 1.3456 or 1.3521.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3400 or 1.3348.
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
I wrote last Thursday that I had no directional bias and was expecting the price to range. This was a sufficiently accurate forecast as the price just went sideways that day. However, since then the action has turned more bearish with the price getting established below 1.3500 and even breaking down below the next level of support. A longer-term price chart such as the daily chart shows more clearly that the price was getting heavier and heavier before finally breaking, so the technical picture is now looking significantly more bearish and we have a bearish long-term trend. However, it is true that the Pound is stronger than the Euro and Japanese Yen, which have been falling more heavily against the Dollar. Today I take a bearish bias if the price can break strongly below 1.3431.
There is nothing due today concerning either the GBP or the USD.