Yesterday’s signals were not triggered, as there was no bullish price action at 1.3145.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3057, 1.3029, or 1.3000.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3105 or 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.
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 British Government very narrowly won a crucial vote on Brexit yesterday, as it becomes clear that the terms of its final offer are going to be the subject of intense struggle in Parliament, leaving a great deal of uncertainty and an increased possibility of “hard Brexit” or even another election which could bring the Labour Party to power. Both these scenarios would be likely to make the Pound fall very sharply. As the Dollar is also strong, we have a “perfect storm” in this pair for bears. However, as the price approaches the psychologically important 1.3000 and cluster of support close to it, long-term buyers are likely to step in even if the political situation does not really stabilize. A strong break below 1.3000 would be a very bearish sign.
Concerning the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be a release of Building Permits data at 1:30pm, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories at 3:30pm.