My previous GBP/USD signal yesterday was not triggered as the bearish rejection of $1.3536 did not happen until after the London close.
Today’s GBP/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.3467, $1.3432, or $1.3402.
Put 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 run.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.3536, $1.3549, or $1.3603.
Put 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 run.
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 likely to be on the long side, either from a bounce at $1.3467 or a breakout above $1.3550. Neither quite set up, and the breakout did not happen. However, one day later, I see the same potential setups. The price is ranging a little choppily between these two price areas, and by looking at the chart, a bullish resolution looks a bit more likely than a bearish one.
There is little to drive either currency within this pair today, so it may be worthwhile for anyone scalping to look to trade reversals of these areas, and to be quick in taking profits.
There is not much else to say here, except there are probably going to be other currencies which are more interesting to trade today, like the Australian Dollar or the Japanese Yen, or precious metals.
Markets are generally somewhat dangerous to trade right now, with a lot of institutions sitting on the sidelines.
There is nothing of high importance scheduled today regarding either the GBP or the USD.
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