Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2610.
- 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 1.2831.
- 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 Pound extended its recent drop yesterday on continued British political instability, with the minority Conservative still not having reached a formal deal with a smaller party to secure a locked-in Parliamentary majority required to govern. However, the expectation is that such a deal will be reached, and the Conservatives will be able to continue for approximately 2 years. Technically, there is now a double bottom at the post-election low around 1.2640, and we are seeing a bullish rise as part of a pullback. I still maintain a longer-term bearish outlook as the British government will have such a small Parliamentary majority, it will probably not be able to fully take care of business.
Concerning the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be a release of PPI data at 1:30pm.