Yesterday’s signals were not triggered, as there was insufficiently bearish price action when the resistance level at 1.3258 was first 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 1.3320, 1.3370, 1.3402, or 1.3434.
Put the stop loss 1 pip above the recent 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 25 pips in profit and leave the remainder of the position to run.
Long Trade Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3210.
Put the stop loss 1 pip below the recent 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 25 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 that the pound was relatively strong, while there was persistent weakness in the USD, so the pair was well positioned to keep rising if it could break up above 1.3258 as it reaches new multi-month high prices and keeps the bullish trend going.
This was a good and profitable call as the price is now more than 30 pips above 1.3258.
This currency pair is really standing out at the moment, as the U.S. dollar recovers, but the price is still moving up despite that. Another interesting factor which is making the pound stand out is the fact that the euro, with which it is usually highly positively correlated, is weak and falling.
The price is breaking to new 50-day long-term high prices, which is another bullish sign. The break beyond the psychological area at 1.3250 is also a bullish sign.
I remain bullish on this currency pair and it is likely to be a good short-term trading opportunity today in the long direction.
There is nothing of high importance due today concerning either the GBP or the USD.