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 Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the upper channel trend line shown in the price chart below which currently sits at about 1.2810.
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 the lower channel trend line shown in the price chart below which currently sits at about 1.2674.
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 if the Dollar regained its strength, we can expect it to gain against the British Pound. A sustained break above 1.2820 would be a surprise and a significant bullish sign technically. I would take a bearish bias if the price made a decisive bearish turn from 1.2805 to 1.2820. This was a good call as the price did make a strongly bearish turn in that area after rising early on, and then fell sharply to a long-term low area at about 1.2700 before recovering somewhat. There are now no key horizontal levels anywhere nearby; just a bearish price channel. Sentiment on the Pound is very weak as the British government’s Brexit plan looks doomed, with betting odds of about 20% on its successful passage later this month being offered, holding out the likely prospect of a no deal Brexit. This is keeping the Pound down and a strong break below 1.2700 is quite possible. I would take a bearish bias if the price can trade below 1.2700 for a couple of hours later today.
There is nothing important due today concerning the USD. Regarding the GBP, the Governor of the Bank of England will be testifying before Parliament 9:15am London time.