GBPUSD: Evenly balanced between bulls and bears
Yesterday’s signals were not triggered, as there was no bearish price action when 1.2864 and 1.2888 were hit.
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 1.2822, 1.2799, or 1.2767.
⦁ 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 1.2912, 1.2925, or 1.2943.
⦁ 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 level at 1.2822 was likely to be quite strong, so I thought it would hold despite the daily chart suggesting a downwards movement.
The price in fact rose bullishly, so I was right about that level holding, although it was never tested.
The technical picture is now more evenly balanced between bulls and bears – the price has been holding in a range between about 1.3000 and 1.2750 for a few weeks now. The Pound should remain relatively strong over the next couple of weeks provided opinion polls continue to forecast a strong victory in the British general election of 12th December for the governing Conservative Party.
I have no directional bias today although I generally prefer long trades from bullish bounces at key support levels.
There is nothing of high importance due today concerning either the GBP or the USD.