Consolidation at $1.3273 and $1.3458

There may be a possible short trade opportunity from $1.3458 later.

My GBP/USD signal on Tuesday was not triggered as there was no bullish price action when the support level at $1.3388 was first hit.

GBP/USD Signals Today

Risk 0.75%.

Trades must be taken before 5pm London time today.

  • Long entry following a bullish reversal in H1-frame price action immediately after the next touch of $1.3273.
  • Put the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade has reached 25 pips of profit.
  • Withdraw 50% of the position in profit when the price reaches 25 pips in profit and let the rest of the position work.

Short business idea

  • Short entry following a reversal of the bearish price action on the H1 time frame immediately after the next touch of $1.3458.
  • Set the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade has reached 25 pips of profit.
  • Withdraw 50% of the position in profit when the price reaches 25 pips in profit and let the rest of the position work.

The best method to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside, or even just an engulfing candle with a higher close. You can exploit these levels or areas by observing the price action that occurs at the given levels.

GBP/USD Analysis

I wrote on Tuesday that we were seeing the pound recoup gains against the dollar, but the upside seemed slow and weak and so far hadn’t even made up half of the loss, so the bulls hadn’t made up for it. doesn’t look very convincing. I was expecting a bearish reversal at $1.3458. Unfortunately the price did not reach that level during the day, but I was right to look on the bearish side as the price eventually fell as low as the support level I had identified at $1.3273 .

The technical chart is now a clear, flat consolidation between $1.3458 and $1.3273. I think it is very likely that the price will stay within this range today unless there is a major geopolitical development regarding the war in Ukraine that shocks the markets, which would likely drive the price down sharply.

As the price is near the top of the range, I think a bearish reversal from $1.3458 would be a great opportunity for a short trade entry. It may be interesting to enter a trade from a bearish reversal very close to $1.3458 even if the level is not quite reached – the half figure t $1.3450 could also be good .

Regarding the USD, there will be a release of ISM Services PMI data at 15:00 London time. There is nothing major expected today for the GBP.

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