My GBP/USD signal on 4th April was not activated because the key levels were not reached. Today’s GBP/USD signals include a risk of 0.75% and trades must be executed before 5pm London time.
For long trade ideas, consider entering after a bullish price action reversal on the H1 timeframe at $1.2376, $1.2337, or $1.2312. Place the stop loss 1 pip below the local swing low and move it to break even once the trade is 25 pips in profit. For short trade ideas, enter after a bearish price action reversal at $1.2507, $1.2578, or $1.2647, with the stop loss 1 pip above the local swing high.
To identify a classic “price action reversal,” watch for an hourly candle to close with a pin bar, doji, outside, or engulfing candle with a higher close. The GBP/USD analysis shows a more bearish technical picture due to the US Dollar’s rise and the British Pound’s consolidation below $1.2500. UK CPI data was slightly higher than expected, reducing pressure for a rate cut.
With a wide range between $1.2500 and $1.2376, a short trade from a bearish reversal at $1.2500 may be the best opportunity today. There are no high-impact events scheduled for the USD, but there will be a speech by the Bank of England Governor at 5pm London time.