Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.3102 and 1.3110.
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 1.2951 or 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 the movements in this pair GBP/USD are less predictable as there is a Brexit wild card in the value of the British Pound. I thought it would be more useful to trade the EUR/USD that day than this pair. As it happened, there was little difference between the two currency pairs, with both trending down quite smoothly and breaking support. Today, the action is clearly bearish, although the movement is obviously stronger in the EUR/USD currency pair. The price here remains sensitive to British political developments as Britain’s Brexit approaches its moment of truth, and the governing Conservative Party’s conference is currently running, producing more rumours than usual. Technically, the action is bearish, but it may be that the large round number here at 1.3000 will hold so that is something for bears to watch out for. I would be extremely reluctant to take any long trade however unless there is a strongly bullish bounce at 1.2950.
Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3pm London time. There is nothing due today concerning the GBP.