Yesterday’s signals were not triggered, as there was no bullish price action at 1.2867.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered 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 1.2988 or 1.3044.
- 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 1.2828 or 1.2782.
- 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 that I thought that 1.2867 was likely to be pivotal. This was not a helpful call, as the price went a little lower before moving backwards and forwards. As always, this pair is being driven mostly by rumours of a possible Brexit deal. If such a deal is announced and seems to have a good chance of ratification in the British Parliament, we can expect a sharp upwards movement. It is notable that while the U.S. Dollar has been strong, the Pound has held up better against it than many other currencies have. It looks as if the price has found support at 1.2828 and we may well see a rise in the price today. There is also some U.K. economic data due which could have an unpredictable impact. I have no directional bias, but I see any surprise as most likely to happen on the long side.
Regarding the GBP, there will be a release of Average Earnings Index data at 9:30am London time. There is nothing important due today concerning the USD.