Last Thursday’s signals were not triggered, as the bullish price action took place a little below the support level identified at 1.3337, although the level was broadly effective.
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 1.3337 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 of 1.3456.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 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 Pound got a boost at the end of last week as it was announced that a Brexit deal had been agreed in outline. However, as the hours went by, leading British politicians have declared that “nothing is agreed until everything is agreed”, creating some confusion about whether the deal is really going to happen on relatively “soft Brexit” terms. As the British government is very weak and its long-term survival is not assured, this has hit the Pound, which now looks as if it is going to remain in a volatile consolidation. The long-term bullish trend looks to be almost over. In this environment, trading rejections of support and resistance levels can play off, but fairly wide stops are needed to cope with the volatility, taking profits when other levels are reached. I have no directional bias.
There is nothing important due today concerning either the GBP or the USD.