Yesterday’s signals were not triggered, as there was no bearish price action at 1.2988.
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 1.3044.
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 1.2947.
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 I had no directional bias, but I see any surprise as most likely to happen on the long side. I was correct in the sense that the price moved up quite strongly upon news that a draft Brexit deal is being put before the British government for approval to send to Parliament for ratification.
We now see quite volatile price movement, and everything is going to depend, first to some extent upon the economic news, and then news due later as to whether the Cabinet passes or rejects the draft deal. If the cabinet rejects the deal, expect the price of this currency pair to fall rapidly. If the deal is passed, expect a moderate rise.
Regarding the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be a release of CPI data at 1:30pm, and the Chair of the Federal Reserve will be giving a minor speech at 11pm.