Yesterday’s signals were not triggered, as the bearish price action unfortunately took place a little way above the resistance level identified at 1.3181.
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 H1 time frame immediately upon the next touch of 1.3143 or 1.3162.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3030 or 1.3006.
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 yesterday although there was a hint of a very weak long-term bullish trend, this pair looked neutral and flat and would be relying upon news items such as the data due later or any new developments about a Brexit deal to make more serious movement.
This was a reasonably good call as the pair fell all day as the U.S. Dollar began a recovery which continued after the release of the FOMC meeting minutes. The lower than expected British inflation data which came in at 2.4% and not 2.6% also weakened the Pound and helped ensure the downwards movement. Further Brexit controversy over a possible Parliamentary vote on any final deal is not helping the Pound either. There is short-term bearish momentum and I think we are likely to see lower prices still over the coming hours, at least to 1.3030.
Regarding the GBP, there will be a release of Retail Sales data due at 9:30am London time. There is nothing important due today concerning the USD.