Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3217.
- Put 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.
Long Trade
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3030.
- Put the stop loss 1 pip below the local swing low.
- 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 yesterday that at present this pair is all about the British Pound, whose relative value is now all about whether a Brexit deal will be reached. As such, technical analysis is of little use with political events the main driver of the price. Therefore, I was be extremely careful about trading this pair, and I had no directional bias yesterday.
The picture is arguably a little more bullish today, with the Pound being yesterday’s strongest gainer of all the major currencies. However, the short-term price action suggests we are going to see consolidation during today’s London session. It is quite likely there will be only minor movements today during the London session, with the market looking to the major FOMC releases tonight which should bring more volatility and possibly direction.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Statement, Federal Funds Rate, and Economic Projections at 7pm, and the usual press conference half an hour after that.