Yesterday’s signals were not triggered, as unfortunately the bullish price action took place a little way above 1.2834.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3044, 1.3084, or 1.3117.
Place 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.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2975 or 1.2934.
Place the stop loss 1 pip below the local swing low.
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 I would take a bearish bias today if the price tries and fails to rise above 1.2859 as the London session gets underway. As it happened, the price easily cleared that hurdle before making a very sharp rise due to a report that a positive Brexit deal was more likely to happen, so no harm done.
The report that the EU are ready to offer the U.K. a good Brexit deal seems to be true, so it continues to impress the market. Despite the long-term bearish trend, this is a very bullish development, and I thin the Pound could rise higher still today. Therefore, I would take a bullish bias today if the price can get established above 1.3050 during the first few hours of the London session.
There is nothing important due today concerning either the GBP or the USD.