My previous GBP/USD signal on 9th July was not triggered, as unfortunately the bullish rejection of $1.2777 did not complete before the London close.
Today’s GBP/USD Signals
- Risk 0.75%.
- Trades must be taken prior 5pm London time Wednesday.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2925, $1.2881, or $1.2836.
- 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.
- Take off 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 Ideas
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.3049 or $1.3126.
- 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.
- Take off 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.
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GBP/USD Analysis
I wrote in my previous GBP/USD prediction one week ago that the technical picture had become much more bullish, with the price threatening to make a bullish breakout to a new 3-month high.
This was a good and accurate call, as was me looking to buy any bullish bounce at the nearest support level of $1.2777.
The price continued to rise over the week to make a new 11-month high not far from the big round number at $1.3000. However, as the Dollar has regained some strength, the price has begun to make a natural bearish retracement, invalidating some support, indicating a further fall to the next support level at $1.2925 is likely.
If we get a bullish bounce at $1.2925 later, this could be a good long trade entry, but I prefer to wait for a bullish close above the round number at $1.3000 before entering any new long trade in this currency pair.
There is nothing of high importance scheduled today concerning the GBP. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.
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