GBP/USD: Awaiting British Advance GDP data
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2957 or 1.3009.
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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2870, 1.2822, or 1.2799.
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.
Remove 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 I would not be interested in taking any long trades as there were no news items scheduled which could be likely to turn this trend around. I was ready to take a short bias if the price could close below 1.2870 for two consecutive hours early in the day’s London session.
This was a good call insofar as it was enough to stay out of trouble.
The Dollar is strong, but the Pound doesn’t want to go anywhere ahead of Bank of England testimony as well as the key GDP data release due later. I think a bearish move triggered by these releases would go further than any bullish move that might happen, but otherwise, trading reversals at either if the nearest key resistance and support levels are equally likely to be good trades.
Concerning the USD, the Chair of the Federal Reserve will be testifying before Congress at 3pm London time. Regarding the GBP, there will be a release of Preliminary GDP data at 9:30am, and the Governor of the Bank of England will be testifying before the British Parliament at 3:35pm.