Last Thursday’s signals were not triggered, as there was no bearish price action when either of the resistance levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2833 or 1.2918.
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 1.2616.
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 last Thursday that the situation here was still weakly bearish, with new lower resistance having firmed up at 1.2823. Much would depend on British political developments which are prone to surprises. We had a sudden spike up which has fallen off and now the picture still looks bearish, although the price chart below shows that is within the context of a medium-term consolidating triangle formation. Technically the picture is quite bearish and the Pound is weak, but everything here is 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.
There is nothing important due today concerning either the GBP or the USD.