Yesterday’s signals were not triggered, as the bullish price action took place below 1.2708.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2918 or 1.3044.
Put 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.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2697 or 1.2618.
Put 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.
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 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 thought that the Pound would make a new higher high price, which I was wrong about. I was partially correct insofar as the price has held up and recovered after its sharp fall to get back to the approximate area where it was trading earlier.
This pair will continue to see volatility and will be strongly affected by British political developments. The government will probably survive tonight’s no confidence vote and if it does, the price should rise. If it loses the vote, expect the Pound to fall sharply, but it should still recover even from that as the market digests the fact that it will probably mean a different Conservative government and not a general election.
Concerning the GBP, the Governor of the Bank of England will be testifying before Parliament at 9:15am London time. The British Government will be facing a no confidence vote in Parliament later this evening. There is nothing due regarding the USD.