Yesterday’s signals were not triggered as the bullish price action took place a few pips above 1.2400.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today.
Short Trade Idea
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2571.
- 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.
- Remove 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
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2400 or 1.2378.
- 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.
- Remove 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 the picture here was now looking much more bullish, as USD weakness has persisted and the Pound was showing some strength by breaking decisively above that pivotal area of former resistance at about 1.2400.
This was basically a good call, although it was not enough to trigger a trade entry as although the support level at 1.2400 has held, it did not give sufficiently bullish price action to justify an entry.
USD weakness is persisting, and the Pound is still one of the more bullish currencies, so I think that today will be an up day. I would be very happy to take a long trade following a bullish bounce at 1.2400 later or two consecutive hourly closes above 1.2450.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.