Last Tuesday’s signals were not triggered, as there was no bullish price action at 1.3140.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3217.
Put 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3030.
Put 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 last Tuesday that if the price could break below 1.3140 soon, we were likely to see a deeper bearish retracement, with no support levels close below that to hold up the price. I was wrong, as the price did break below that level but recovered.
The price now looks very unattractive, with a narrow consolidation within a very wide area between the nearest key support or resistance levels. Even though the British Pound has recently been interesting to trade as the subject of a great deal of political dispute over the terms of Britain’s forthcoming exit from the E.U. it seems to be flattening out.
We will probably get some action when the British Retail Sales data is released. The action suggests that a bullish rise is likely to be stronger than any fall today.
There is nothing important due today concerning the USD. Regarding the GBP, there will be a release of Retail Sales data at 9:30am London time.