GBP/USD Signal Update
Yesterday’s signals produced a great long trade following the inside pin candle rejecting the support level identified at 1.2346 early in yesterday’s London session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2416 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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2561 or 1.2610.
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
I had thought yesterday that the support at 1.2416 would hold but the price fell very strongly and suddenly, before reversing at the support level below that almost to the pip. The price then shot up later. It is a strange day when a movement of more than 100 pips in each direction happens in an hour or two in both directions, and this can be attributed to politics as the British Parliament was voting on the terms of how its exit from the European Union would be conducted politically.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.