Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3095 or 1.3165.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2940.
- 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
This week, the British Pound could witness violent moves since the conservative party in the United Kingdom had begun its meetings to determine the fate of the May government and the future of relations between the country and the European Union (EU) if agreement is reached, or not, on post-Brixet relations in March 2019. The pair tested the 1.3000 psychological support before settling around 1.3027. Any move below 1.30 will increase the bearish momentum and we may see stronger bearish levels. Technically I am still selling the pair at every bullish bounce.
Regarding the GBP, there will be the release of the Industrial Purchasing Managers Index. Regarding the USD, there will be the release of the ISM industrial index and spending on construction.