Last Thursday’s signals were not triggered, as unfortunately the bullish price action took place between the support levels of 1.3000 and 1.2950.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3117 or 1.3083.
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.
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 although the price looked like it had some short-term bearish momentum behind it, the problem for bears was the likelihood of strong support at 1.3000 and at levels below 1.3000. Once the price reached 1.3000, it was difficult to say what will happen, and I was bearish below 1.3050. This was a good call, as the price did fall to reach 1.3000 in the short term and broke below that level before reversing and eventually taking off again after leaning on 1.3000 for support. Long-term buyers often step in at key levels after sustained falls, and this is probably what happened here. The Pound is still subject to a lot of political uncertainty over Brexit, but the U.S. Dollar has been selling off strongly and that has been enough to drive the price up. It looks like the bulls will probably maintain the upper hand, but first the price needs to break convincingly above the resistance level at 1.3145. Technically, that level has already been invalidated, but it is making its presence felt.
There is nothing important due today concerning either the GBP or the USD.