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 H1 time frame immediately upon the next touch of 1.3145.
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
Long entry following a bullish price action reversal on the H1 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
This is the most interesting major currency pair at present, with the Pound getting a lot of interest as time moves towards the deadline at which the terms of Brexit will finally be decided.
As prospects for a weak deal between the U.K. and E.U. rise, the Pound has slowly but surely strengthened.
At the time of writing, the price is being held just under resistance, which looks as if it will break, suggesting we are going to see another test of the next level at 1.3145. I would therefore be bullish on this pair today if the price can get above 1.3100 as the London session gets underway, at least until 1.3145 is reached, which is already a resistant double top, and might become a triple top if the price fails there again.
The support level at 1.3030 looks weak and I do not have a great deal of confidence in it.
There is nothing important due today concerning either the GBP or the USD.