Yesterday’s signals were not triggered, as neither 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3145.
Put 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.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3350.
Put 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
I wrote yesterday that the price now looked reasonably bullish but was back in the middle of the wide range which still exists. Therefore, it remained difficult to predict direction. This seems to have been a good approach, as the price has just gone sideways over the past day within a very narrow range in an extremely quiet Monday market. There is no change to the overall picture: aimless consolidation within the middle of a very wide range, despite the increasing likelihood of a “soft Brexit” for the U.K. I have no directional bias, and it will probably be wise to avoid trading this pair today unless something dramatic happens.
Concerning the GBP, the Governor of the Bank of England will be testifying before the British Parliament at 9am London time, followed by the release of the Average Earnings Index data at 9:30am. Regarding the USD, the Chair of the Federal Reserve will be testifying on the Semi-annual Monetary Policy Report before Congress at 3pm.