My previous GBP/USD signal on 11th February was not triggered.
Today’s GBP/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.3467, $1.3432, or $1.3402.
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.
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.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.3536, $1.3549, or $1.3603.
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.
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.
I wrote in my previous GBP/USD forecast almost two weeks ago that the only opportunity I really saw as potentially likely to set up was a bullish breakout following a consolidation below the round number at $1.3700.
This did not set up, but I was correct to imply that the round number at $1.3700 would be pivotal.
The technical picture now is quite different. There is nothing much going on fundamentally or sentimentally with the British Pound, so it makes sense to focus on the technicals. The dominant feature in the price chart below is the support at $1.3467 which has continued to hold for long enough to look significant. This is producing a first higher low / bullish “square root” which suggests the line of least resistance looks likely to be higher.
The best opportunities here are likely to be:
A long trade from a bullish bounce off $1.3467.
A long trade following a bullish breakout above $1.3550.
The first option will give you a better reward to risk ratio, while the second option could be a higher probability trade.
There is nothing of high importance scheduled today regarding either the GBP or the USD.
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