GBPUSD: Ranging between 1.3050 and 1.3200
Yesterday’s signals were not triggered, as there was no bullish price action when the support level at 1.3102 was first reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3057.
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 Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3194 or 1.3305.
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 the price will most likely range until the release of U.S. data between 1.3100 and 1.3200. This was a fairly good call as although the support level near 1.3100 has been invalidated, the price has not moved much.
Again, today we have ranging conditions in this pair with bulls and bears quite evenly matched, and it will probably take the release of U.S. data later to create any significant price movement. This time it is the ADP forecast of tomorrow’s non-farm payrolls number.
I again think there are likely to be better opportunities elsewhere in the market today rather than in this currency pair.
A break below 1.3050 could lead to a stronger fall, but it may be that the big round number at 1.3000 becomes supportive as the price gets closer to it.
There is nothing of high importance due today regarding either the GBP or the USD.