Last Thursday’s signals were not triggered, as neither of the key levels were ever reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may be entered before 5pm London time today only.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3145.
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.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3350.
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
I wrote last Thursday that this currency pair was looking very uncertain due to political instability and because it was in the middle of a very wide range. We saw the Pound slump then shoot right back up on Friday with President Trump’s visits to the U.K. and comments which prompted speculation about the future of a U.S./U.K. trade deal. The price now looks reasonably bullish but is back in the middle of the wide range which still exists. Therefore, it remains difficult to predict direction today, but bulls will be encouraged by the British Government’s strong defence of its very “soft” Brexit position.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.