Last Thursday’s signals were not triggered, as none of the specified levels were reached within the time period.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken 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 1.2988.
- 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.
Short Trade
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2867 or 1.2782.
- 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 last Thursday that I saw the 1.3162 area as important – a sustained break would be a bullish sign, but I thought this area was likely to be very resistant.
This was a good call as the resistance was never broken.
The price has continued to fall with quite strong bearish momentum. The Dollar is generally strong, and the Pound is weak, on increasing rumours suggesting the British government is going to find it extremely difficult to get any Brexit deal through Parliament. However, technically, this pair is less bearish than many others, as it is moving in wide swings and is a long way off its recent lows.
I think 1.2867 is likely to be pivotal today. I prefer to take a directional bias in EUR/USD than in this pair today.
There is nothing important due today concerning either the GBP or the USD. It is a public holiday today in the U.S.A.