GBP/USD Signal Update
Yesterday’s signals were not triggered as none of the key levels were ever 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2416.
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 1.2610.
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 British Pound is now starting to look more bullish and at the time of writing is threatening to break up past a key resistance level at 1.2561. As the price is already touching there I would look for a possible short later at the next level of 1.2610. If the price continues to rise and make new highs for another day or so, this pair will start to look like a strong buy.
The resurgent Pound is driven mostly by political reasons, as the British Parliament has voted to approve the Brexit process and delegate responsibility to the executive.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. Concerning the GBP, the Governor of the Bank of England will be speaking at a minor function at 6:30pm.