Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may be taken before 5pm London time today.
Long Trade
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2642.
- Put the stop loss 1 pip below the local swing low.
- Adjust 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
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2828.
- Put the stop loss 1 pip above the local swing high.
- Adjust 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 20 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 technical picture had become a little more bullish. Zooming out to a daily price chart showed we had a bullish V rejecting 1.2600 and the advance was strengthening, so I finally see some genuine strength in the British Pound now.
I thought higher prices were somewhat more likely over the course of the day, although this was prone to be unpredictable. Still, it wasn’t a bad call as the price did rise over the day but then fell back, so my caution was justified.
This pair still looks aimless, the real action is elsewhere, and the chart remains quite choppy with only a support level nearby. The outlook for this pair still looks unpredictable and I would not be looking to trade this today.
There is nothing important due today concerning the USD. Regarding the GBP, the Governor of the Bank of England will be speaking at 10am London time.