Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2823 or 1.2879.
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 the picture looked more bearish now, with possible new lower resistance developing at 1.2805. As it happened, the price has mostly gone sideways, with a slight bearish bias.
The situation is relatively unchanged, still weakly bearish, with new lower resistance having firmed up at 1.2823. Much will depend on British political developments which are prone to surprises, but it still looks likely that the British government will not get its Brexit deal ratified and that will have dramatic consequences for the Pound in either direction depending upon whether the eventual outcome in no deal or no Brexit.
There is nothing important due today concerning either the GBP or the USD. It is a public holiday in the U.S.A. today.