Yesterday’s signals were not triggered, as there was no bearish price action at 1.3006.
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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3042 or 1.3085.
- 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 Trade
- Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2894.
- 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 had no directional bias today, although I did think the nearest support and resistance levels were likely to hold. I was wrong, as resistance was broken before the price fell back. The picture is clearer now, and more obviously technically bearish. In fact, over the medium-term, this pair is showing the clearest direction of all the major Forex currency pairs: downwards. The Pound remains vulnerable to political developments over the terms of Brexit which must be resolved over the coming months. I would be bearish today below 1.2950 to at least 1.2900.
There is nothing important due today concerning either the GBP or the USD.