GBP/USD: Yet several failed recent pushes up
Yesterday’s signals produced a short trade entry signal from the bearish pin candlestick which rejected the resistance level identified at 1.3153.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5 pm London time today only.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3153, 1.3191, or 1.3200.
- 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.
- 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.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3115 or 1.3079.
- 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.
- 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.
GBP/USD Analysis
I wrote yesterday that the line of least resistance looked, marginally, to be downwards, but as we get closer to 1.3000 there is more and more likelihood of buyers stepping in.
I suggested that a closely monitored long trade from a short timeframe bullish reversal as close as possible to 1.3000 would probably be the best opportunity.
This was a good call as the price rose quite firmly over the past 24 hours, so I was right about the best potential.
The bullish price movement has established two new support levels. Yet they look strange and I have no faith in them.
Overall, the price action still looks somewhat messy and unpredictable, but there does seem to be some short-term strength in the British Pound compared to other currencies.
However, the action just looks too unpredictable for me to be trading this currency pair today.
There is nothing of high importance due today regarding either the GBP or the USD.