GBP/USD Signal Update
Yesterday’s signals produced a profitable long trade following the bullish engulfing candle rejecting the support level identified at 1.2424. It would be a good idea to exit from most of the position now.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2424 or 1.2346.
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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2570.
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 fell yesterday as soon as the news was announced from the English High Court that Article 50 must be invoked by Parliament and cannot be triggered by the executive, but this simply provided a buying opportunity as the market does not see any meaningful chance that Parliament could vote to defy the Leave victory in last year’s referendum.
The trend still looks bullish even though the price appears to be turning down today.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.