Yesterday’s signals were not triggered, as there was no bullish price action at either 1.2780 or 1.2755.
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 H1 time frame immediately upon the next touch of 1.2774 or 1.2872.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2616 or 1.2552.
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 a further downwards movement was the day’s most likely outcome, and I was right, although I was concerned about the possibly strong support at 1.2755. I thought that if the price could break convincingly below 1.2750 it would be a very bearish sign, and it was.
The downwards move has been halted, at least temporarily, by the round number at 1.2700. We have a 1-year low not far below at 1.2661. The long-term downwards trend is accelerating and relevant, with the U.S. Dollar strong and the British Pound particularly weak as a no-deal Brexit is seen as an increasingly likely outcome. For all these reasons, trading this pair short looks like a wise approach. It looks as if we may get a short-term bullish retracement today, but I think it would probably fail at 1.2774 which would give an opportunity for another short trade – I would be bearish there.
There is nothing important due today concerning either the GBP or the USD