Yesterday’s signals were not triggered as although the resistance level at 1.2879 was able to cap the day’s price action, the action there was not sufficiently bearish.
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 1.2879 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 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 technical analysis is less important in this pair: 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. Everything will depend upon how the British Parliament’s vote on the Brexit deal shapes up over the next three weeks or so before the vote.
Technically there is a small recovery, with the level at 1.2879 looking pivotal and still attractive for a potential short trade. A break above that level would be a bullish sign but nothing to get too excited about.
There is nothing important due today concerning either the USD. Regarding the GBP, there will be Inflation Report Hearings at 10am London time.