Yesterday’s signals were not triggered as the bearish price action took place a little way above 1.2909.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am and 5pm London time today.

Long Trade 1

· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2756.

· 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 Trades

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2863 or 1.2921.

· 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.

GBP/USD Analysis

This pair has taken a bearish turn, breaking below support and a trend line. This development stands out as the U.S. Dollar has weakened, with the Pound being more or less the only major currency it strengthened against. For this reason, and due to the relative cleanliness of the bearish movement, I think a continued move down to 1.2756 is the most likely short-term scenario.

Concerning the GBP, there is a release of Average Earnings Index data at 9:30am London time. Regarding the USD, the Chair of the Federal Reserve will be testifying before the House Financial Services Committee on monetary policy at 3pm, followed half an hour later by Crude Oil Inventories.