Last Thursday’s signals were not triggered, as there was no bullish price action at 1.2975.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2934 or 1.2999.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2894.
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 last Thursday that I would take a bullish bias if the price could get established above 1.3050 during the first few hours of the London session. The price failed at its high of the day just a few pips below that level, so it was a good call on the pivotal point for the day. The situation now looks more bearish as the European Union’s chief negotiator is suddenly contradicting his words and taking a more rejectionist position against a possible deal with the U.K. by effectively stating that the U.K.’s position is unacceptable. This has led to an open this week at a gap down below the former probable support level at 1.2934. If that level holds as new resistance, I see the price as likely to fall further, but probably not by a lot as trading is likely to be thin, and due to the several support levels nearby.
There is nothing important due today concerning the USD. Regarding the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. It is a public holiday today in the U.S.A.