Yesterday’s signals were not triggered, as there was no bearish price action at 1.2833.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered 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 touch of the broken trend line currently sitting at about 1.2805.
- 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 Trade
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2616.
- 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 technically the picture was quite bearish and the Pound was weak, but everything here was really driven by Brexit politics, with the weakness coming from the fact that the British Prime Minister seems to have lost control of the U.K.’s exit from the E.U. which could plunge the country into political chaos by the end of the year following a lost vote in Parliament on the terms of the deal.
The situation today is marginally worse, with betting shops currently offering odds of 5 to 1 on the Prime Minister winning the Parliamentary vote on the deal scheduled for 11th December, so the outlook looks bleak for the Pound over this period. Technically, we are now seeing a breakdown of the consolidating triangle and a solid fall in this late Asian session, so I take a bearish bias.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.