GBPUSD: More bullish above 1.3200
Yesterday’s signals were not triggered as the bullish price action took place below 1.3110.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3102 or 1.3057.
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 Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3305.
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 it seemed likely that 1.3200 was going to be pivotal today, and this was a great call as it capped the high of the day.
The price is consolidating in relatively wide swings between 1.3100 and 1.3200, with both support and resistance levels looking equally strong. Neither bulls nor bears have the upper hand.
Direction today will probably be driven by the U.S. Dollar data on the non-farm payrolls forecast. The price will most likely range until that release.
I think there are likely to be better opportunities elsewhere in the market today rather than in this currency pair.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time.