My previous GBP/USD signal yesterday was not triggered.
Today’s GBP/USD Signals
Risk 0.75%.
Trades may only 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 $1.3504, $1.3467, or $1.3432.
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 yesterday that I thought the best opportunities were to trade any rejections of extremes of the range between $1.3467 and $1.3550. I thought this price area was likely to hold during the day’s London session.
I was more or less correct about that, but there was no trade entry setup, and as the London session came to an end the price broke above $1.3550, briefly used that level as support, but then fell back and has since broken down through two former support levels.
The price is showing short-term bearish momentum and could now fall as far as $1.3504 before reaching a key support level.
A bullish bounce there, especially if it rejects the round number at $1.3500 at the same time, could be a good long trade, at least for a scalp.
There is nothing of high importance scheduled today regarding the GBP. Concerning the USD, there will be a release of Unemployment Claims at 1:30pm London time.
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