Last Thursday’s signals were not triggered, as there was no bullish price action at 1.2828.
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 1.2879 or 1.3044.
- 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 Trade
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2616.
- 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 the British Pound will now become extremely vulnerable, even more so than usual, to any political rumours or developments. So, this pair can be extremely unstable, dangerous to trade, and impossible to forecast over the short term. However, in the absence of any shock, passage by the Cabinet should produce a more bullish environment.
I was wrong about the more bullish environment, as it seems highly likely that the British Parliament will vote down the Prime Minister’s deal, which could call into question the whole Brexit process and possibly bring about a “no deal” Brexit or even the U.K. staying in the E.U. Either outcome would produce wild movement in the Pound, so technical analysis is less important: it is all politics now which will mostly determine short-term movements in this pair. Be very careful in trading the Pound if you must do it.
There is nothing important due today concerning either the GBP or the USD.