Yesterday’s signals were not triggered, as there was no bearish price action at 1.3185.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3181.
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 H1 time frame immediately upon the next touch of 1.3128.
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 the main thing to watch out for would be a break above the next resistance level of 1.3185, as there would then be nothing stopping the price from rising considerably higher. Therefore, I would take a bullish bias above 1.3185 today. This worked out OK, with the price rising over the London session to eventually reach a high price of 1.3236. However, the rise was short-lived, and the price is now already back below that pivotal level which now sits at about 1.3181. The price may sell off from there, but it looks less reliable. Overall, although there is a hint of a very weak long-term bullish trend, this pair looks neutral and flat and will be relying upon news items such as the data due later or any new developments about a Brexit deal to make more serious movement.
Regarding the GBP, there will be a release of CPI data due at 9:30am London time. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm.