GBP/USD: Watch for break above 1.2335
Yesterday’s signals were not triggered, as none of the key levels were reached during yesterday’s London session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2371.
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 1.2244 or 1.2208.
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 as the price seemed to be making what a decisive bullish breakout beyond the medium-term descending trend line and the big psychological quarter-number at 1.2250, I took a bullish bias here above 1.2250, up to 1.2371.
This was a great call, as the price rose firmly over the day before making a short-term bearish retracement from a price close to the resistance at 1.2371, and the price is still higher now than it was 24 hours ago as at the time of writing.
The technical picture remains bullish, as we have a symmetrical medium-term bullish price channel which is shown in the price chart below, and the price is holding up right on the new higher support level at 1.2296.
I keep a bullish outlook as long as the support level at 1.2296 holds, and I would be prepared to take a bullish bias and a long trade entry if the price can get above 1.2335 by the time New York opens later today.
There is nothing of high importance due today concerning either the GBP or the USD.