GBPUSD: Bullish above 1.2943 until 1.2990
Yesterday’s signals were not triggered, as none of the key levels identified have been reached yet.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Long Trade Ideas
⦁ Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2943, 1.2897, or 1.2862.
⦁ 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.
Short Trade Ideas
⦁ Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3041 or 1.3081.
⦁ 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 20 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 yesterday that the technical picture was looking more bullish above the 1.2900 area, so I took a bullish bias above 1.2900 until about 1.2975 for the day. This was a great call as there were about 50 long pips to be had from the open above 1.2900 to 1.2975.
The price made a shallow bearish retracement after yesterday’s rise, before establishing a new higher support level at 1.2943 and beginning another upwards wave. Even before the London open, it seems clear that the price will attempt today to hit yesterday’s high and possibly go higher.
The Pound is very bullish (U.K. betting markets are now implying a 70% chance of an outright Conservative victory in the 12th December general election) while the U.S. Dollar is weakening, but although bullish the price is coming to a very key and long-term zone of resistance which starts close to the very big psychological round number at 1.3000. This means we may see another failure of the bulls here, or a very technically significant long-term bullish breakout when we can start to get New York closes above approximately 1.3000.
In the meantime, I take a bullish bias on this pair between 1.2943 and 1.2990.
There is nothing of high importance due today concerning either the GBP or the USD.