Yesterday’s signals were not triggered as there was no bearish price action at 1.3042.
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 1.3085 or 1.3143.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3035 or 1.2937.
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 I would be bullish today above 1.3042 until at least 1.3085 if the price held above 1.3042 following the British data release due early in the London session. The price did not get above 1.3042 during yesterday’s session, so it wasn’t a question.
There is still short-term bullish momentum here, with the Pound relatively strong on optimism over a Brexit deal prevailing. However, this upwards movement runs into a long-term downwards trend, so it is far from clear that bulls have a way to trade relatively safely. The price is also running into a cluster of resistance levels which might halt the advance.
It looks as if 1.3035 will probably be the pivotal level today. I would be short-term bullish if we get a strong bullish bounce off that level today.
There is nothing important due today concerning either the GBP or the USD.