Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3560.
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 1.3584 or 1.3666.
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 1.3500 or 1.3456.
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 this pair should remain the most useful vehicle to trade against any renewed weakening of the U.S. Dollar., but there is a cluster of support levels between 1.3500 and 1.3560 which suggest the pace of downwards movement is going to slow down for now. This seems to have been an accurate forecast, as although the picture still looks bearish, support made itself felt at the psychological number of 1.3500, and the pace of the fall seems to have slowed to the point where it looks as if the EUR/USD is going to fall relatively further if the U.S. Dollar continues to strengthen. At present, it still looks as if the price is going to make a lower low today though. A bullish bounce at 1.3500 could provide an interesting double bottom for a potential long-trade, but the trade would be a long shot – the trend is still bearish.
There is nothing due today concerning either the GBP or the USD.