Bands Limit Strategy for GBPUSD (H1)

A disciplined mean‑reversion plan for GBPUSD on H1. We let price stretch to the outer bands, confirm exhaustion, and trade snaps back to value.

Tools

• Volatility bands (e.g., Bollinger 20,2 or Keltner): outer/inner as extremes/value.
• Structure lines: prior day high/low; session highs/lows.
• ATR(14) for stops & sizing.

Setup logic

• Price extends to outer band into a known level (prior H/L, session edge).
• Evidence of exhaustion: long wick, loss of momentum, small‑body doji/engulfing.

Entry (Fade → Return to Value)

1. Touch/close outside the outer band into level.
2. Signal candle: engulfing/rejection back inside the band.
3. Enter toward the middle band (value).

Stop Loss

• Beyond the extreme wick or ATR(14) × 1.5–2.0 from entry.
• Reduce size on high‑volatility days.

Take Profit

• Primary target: middle band.
• Stretch target: opposite inner band or structure; trail behind micro‑swings.

Filters

• Avoid trades within 30–60 min of GBP/USD top‑tier news.
• Skip if trend slope is steep (bands strongly fanning).
• Max 2 attempts per side per session; risk ≤ 0.5–1%.