GBP/USD Signal Update
Yesterday’s signals were not triggered as the price did not reach 1.2511 until after the session ended.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2424 or 1.2346.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2570.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
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 strong rise has continued, with the price reaching well above the 1.2500 but now seemingly unable to hold up above that psychologically crucial number. The high price was a 5-week high and despite the current sell-off, the pair is looking bullish over the medium-term. There is a crucial court decision due later on whether the British Parliament must vote to trigger Article 50 to begin the process of exiting from the EU, but even if such power is given to the Parliament which potentially could halt Brexit, it seems clear now that the Government will have a majority in such a vote, so it is unlike to affect the Pound greatly.
There is nothing of high importance due today concerning the USD. Regarding the GBP, the English High Court will announce its verdict about Parliament’s role in Brexit at about 9:30am London time.