Yesterday’s signals were not triggered, as there was no bullish price action at 1.3279, and the bullish doji candlestick bounce at the next support level of 1.3221 occurred after the London close.
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 1.3315 or 1.3286.
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 price broke down quite strongly yesterday, which was counter-trend but not a very big surprise as the price had already broken below a bullish channel which had held for a relatively long time. The price made its average range by the London close, finding support at 1.3221, but then rose dramatically to make new highs as news leaked (not officially confirmed) that the U.K. and E.U. were coming to the broad outline of a Brexit deal. The more orderly the Brexit, the better the outlook for the British Pound.
At the time of writing the price now is looking bullish, testing the round number at 1.3400 and suggesting still higher prices will be reached later today.
Concerning the GBP, the Governor of the Bank of England will be speaking at 2pm London time. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, and later at 3pm the Chair of the Federal Reserve will be testifying before Congress. There will be a release of Crude Oil Inventories at 3:30pm.