Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.3029.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 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 1.3000, 1.2950, or 1.2920.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3105 or 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.
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 although we had a “perfect storm” in this pair for bears, long-term buyers would be likely to step in even if the political situation does not really stabilize. After continued strong movement down to 1.3000, this is what happened, with buyers stepping in close to 1.3000. After an initial rise, the price has started selling off again, and it is looks like it has some short-term bearish momentum behind it. The problem for bears is the likelihood of strong support at 1.3000 and at levels below 1.3000. I am bearish between 1.3050 and 1.3000. Once the price reaches 1.3000, it is difficult to say what will happen.
Concerning the GBP, there will be a release of Retail Sales data at 9:30am London time. There is nothing important due today regarding the USD.