Last Thursday’s signals were not triggered, as none of the key levels were reached during that day’s session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered 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 1.3042, 1.3085, or 1.3143.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2937 or 1.2867.
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 we would see still higher prices after London opens, at least for a while, so I had a bullish bias above 1.2885 until the next resistance level at least at 1.2940. This was a good call as the price rose quite quickly to 1.2940 and beyond. The U.S. Dollar recovered some ground on Friday, but the Pound remains relatively strong. This is because of news last Thursday which seems to confirm that a partial deal over Brexit has been agreed, and it may be that this is a sign that a full deal is likely to be reached later this month, as one British government minister has already strongly hinted. We could be seeing the start of a long-term bullish reversal in the Pound, despite the long-term bearish trend.
I would be bullish today above 1.3042 until at least 1.3085 if the price holds above 1.3042 following the British data release due early in the London session.
Concerning the GBP, there will be a release of Services PMI data at 9:30am London time. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.