Yesterday’s signals were not triggered as none of the key levels identified were reached.
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 1.2918.
Place 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.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2697 or 1.2618.
Place 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.
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 the picture was mixed in this pair: longer-term charts suggested that a downwards trend was about to resume, while the shorter-term charts showed a muted but real bullishness marked by the support levels holding, especially the one confluent with the round number at 1.2700.
I think this was a good call as the weakness we have seen in the U.S. Dollar is not being exploited by the Pound but has manifested in other currency pairs.
This pair will over the coming days become dominated by developments in the political struggle over Brexit in the U.K. which is likely to come to a head with a crucial Parliamentary vote in the U.K. next week, so expect more volatility.
I think a “deal” outcome is very likely, and that when this finally happens, the Pound will rise significantly, not necessary by a thousand pips but a couple of hundred would be quite likely. However, there will be some volatility and bearish incidents along the way.
I would avoid trading this pair today as the best opportunities are likely to be in other currency pairs..
There is nothing of high importance due today concerning the GBP. Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 5pm London time.