Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.2947.
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 1.3044 or 1.3085.
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 1.2828.
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 the later price movement would depend upon whether the Cabinet passed or rejected the draft Brexit deal. The price rose over the session as a Cabinet agreement to the deal emerged. However, at the same time it became obvious that many in the governing party in Parliament strongly opposed the agreement, so the rise has been limited as it is not clear that the deal will secure the ratification in Parliament.
The British Pound will now become extremely vulnerable, even more so than usual, to any political rumours or developments. It even seems as if the British Prime Minister is close to a leadership challenge, which would presumably have to run parallel to the Brexit process were it to be triggered, and this might even happen later today. 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.
Regarding the GBP, there will be a release of Retail Sales data at 9:30am London time. Regarding the USD, there will be a release of Retail Sales data at 1:30pm, and the Chair of the Federal Reserve will be giving a minor speech at 4:30pm.