Last Thursday’s signals were not triggered, as none of the key levels were reached during that session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 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 1.3279 or 1.3221.
· Place 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
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch 1.3459.
· Place 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 bullish movement continues, with the price remaining within the bullish channel which has contained it for almost two weeks, which is a long time for this pair to be in a channel. Although the movement has been slow and a little weak, we continue to see breaks and invalidation of resistance levels and new, higher support levels getting established. The break of the former resistance at 1.3344 seems especially significant, although the price has not stayed above it, as there are no more key resistance levels for about another hundred pips, suggesting a sharp upwards movement has now become more likely to happen.
The Pound is in a long-term bullish trend, and the U.S. Dollar has been mostly weak, but it seems as if the move is being mostly driven by a growing belief that the British government is being forced into a softer Brexit. As the British Government is weak and divided, and the EU are determined to make an example of Britain, the negotiating power lies with the EU and paradoxically, that is probably propping up the Pound, which also gets dragged up to some extent by the advancing Euro.
I maintain a bullish bias.
There is nothing important due today concerning either the GBP or the USD.