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, during the next 24-hour period.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3482 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3338 or 1.3300.
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 yesterday that I was expecting bullish bounces at any of the nearby support levels would produce sizeable bullish retracements and that such bullish bounces are the more likely scenario. However, none of the support levels or any levels at all were reached, and the price action looks very aimless and ranging. It looks as if this pair might be best avoided, but there is key British data due during the London session which might produce an interesting move, especially if it is poor for the Pound and the U.S. data is strong for the Dollar later.
The action suggests that the price will fall further, but the high-impact data could push the price anywhere and override the technical picture.
Concerning the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be a release of PPI data at 1:30pm, followed by Crude Oil Inventories at 3:30pm and then the FOMC releases at 7pm followed by the usual press conference half an hour later.