Yesterday’s signals were not triggered, as the rejection of the resistance level at 1.2918 did not happen until after 5pm London time.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2918 or 1.3044.
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 1.2708 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 technically the picture was firmly bullish, with key support continuing to hold near 1.2700. I would take a bullish bias if we get a firm bullish bounce at the nearest support level of 1.2708 later today.
This was a good call as the price continued to rise over the course of the day, until it peaked at the resistance level I had identified at 1.2918.
Today will see the British Parliament vote on the Brexit deal, which is expected to be defeated heavily. The narrower the defeat, the better it is likely to be for the Pound. In any case, it seems increasingly clear that a “no deal” Brexit will not happen, and so we should see the price continue to move upwards over the coming days and weeks.
I think the Pound will make a new higher high price today above yesterday’s high.
Concerning the GBP, the British Parliament will be voting on the EU’s Brexit deal after the end of the London session. Regarding the USD, there will be a release of PPI data at 1:30pm London time.