GBP/USD: Seems bid near 1.2750
Yesterday’s signals were not triggered, as there was no bullish price action at 1.2848 or 1.2891.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8 am and 5 pm 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 1.2923, 1.2975, or 1.3023.
- Place 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.
- 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.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2773.
- Place 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.
- 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.
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 was looking increasingly likely that the price had found a medium-term bottom at the support level above the major quarter-number at 1.2750.
Despite that, I was very dubious about taking any long trade below 1.2900, or short trade. This was a good call as the price was held down by 1.2900, so it was enough to keep out of trouble.
The price looks quite likely to continue consolidating in this area, as although the U.S. Dollar weakened yesterday almost everywhere, the Pound did not rise against it by much, and it still looks technically weak.
It is worth keeping an eye on this currency pair as the trade deal dispute between the U.K. and the E.U. is one of the major price drivers. It has already weakened the Pound quite a lot.
I think it is dangerous to trade any continuation signals between about 1.2750 and 1.2900.
There is nothing of high importance due today regarding either the GBP or the USD.