Yesterday’s signals were not triggered, as there was no bullish price action at 1.2694.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2694.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2600.
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 yesterday that I would take a bullish bias above 1.2700, but liquidity in the Pound was very thin due to it being a public holiday in the U.K. today so I would wait until tomorrow before looking to open any trades here. The price dropped below the 1.2700 area soon after London opened and has moved down moderately. The price is in a weak bullish channel-type structure, as can be seen in the price chart below, but the bullishness looks very weak and the action hints that there will be a break below the lower trend line at some point over the next few days, which could trigger a further fall. There is still a long-term bearish trend and the Pound will probably weaken as Brexit comes into focus again in the next few days as the crucial Parliamentary vote on a deal is only two weeks away.
It is hard to say what is most likely to happen today, but I would take a bearish bias if the price trades below 1.2600 for a couple of hours.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.