Yesterday’s signals were not triggered, as the price never quite reached the support level at 1.2828.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2828.
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.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2923.
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.
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 the best I could say was that the support level at 1.2828 looked very pivotal, so if there was a strong bullish bounce there later, I would take a cautiously bullish bias. There was a strong bounce close to that level, but it was never quite reached. The price then rose from there and at the time of writing has just made a bearish rejection of the nearest resistance level at 1.2923, although the rejection is quite weak.
There should still be some medium-term bearish pressure weighing the price down, but if the price can get established above 1.2923 as the London session gets underway, that would be a mildly bullish sign. It is likely to be today’s pivotal level, but I have no directional bias at this point. There are also data releases on both sides which may push the price around in a surprising way which does not respect technical levels.
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 CPI data at 1:30pm.