Yesterday’s signals produced a profitable long trade at the bullish pin candlestick rejection of the support level at 1.3105, but it only made the minimum 25 pips of profit before returning to break even and being stopped out.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today, over the next 24-hour period only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3216.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3105 or 1.3057.
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
It is very difficult to say what is going to happen next here. There is a long-term bearish trend and the downwards swings are bigger than the upwards swings. So far so bearish, but the clear support at 1.3105 is pushing the price up right now. It is too early to tell but we are getting an indication that today might be an up day. In the absence of other day, the major move may come after the news item on the British Pound, but the data will probably need to be a big surprise to have serious impact. I have a very, very weak bullish bias on this pair today.
Concerning the GBP, there will be a release of Construction PMI data at 9:30am London time. There is nothing important due today regarding the USD.