Yesterday’s signals were not triggered, as there was no bullish price action at 1.3258.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today, over the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3300 or 1.3350.
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 1.3221.
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
I wrote yesterday that the support level at 1.3258 was probably going to be a crucial dividing line. It was, with the price remaining largely bearish once it had broken down below that, but it was not very useful as there was very little price movement. This pair looks to be on the side lines as the British Pound moves out of focus in a risk-off market. The level at 1.3258 is still technically valid, but it looks extremely unreliable, so we are most likely to see the price continue to range between 1.3221 and 1.3300. Within that range, I have no directional bias.
There is nothing due concerning the GBP. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.