GBP/USD Signal Update
Last Thursday’s signals were not triggered as none of the key levels were reached during that session.
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 1.1900.
Put 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 1.2133.
Put 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
The price has opened this week with a strong gap down, opening just slightly below the psychologically crucial 1.2000 level but so far refusing to fall any further. The gap down has been caused the British government’s anonymous press briefing over the weekend to the effect that their opening negotiating position is for a hard Brexit, which has pushed down the Pound which was already weak and vulnerable.
Strong gaps are difficult to trade. They often get filled during the week and if the price does not make new lows during the London session it will probably be bid up eventually, making a pullback the more likely short-term scenario.
Regarding the GBP, the Governor of the Bank of England will be speaking at 6:30pm London time. There is nothing due concerning the USD. It is a public holiday in the U.S.A.