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 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 1.2697 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 this pair would continue to see volatility and would be strongly affected by British political developments. I thought that the government would probably survive tonight’s no confidence vote (it did) and that the price should rise. It held up but did not rise really.
The Forex market is very quiet generally. It seems as if the resistance at 1.2918 is not going to be breached today, and the short-term price action right now is suggesting we are going to see lower prices today. I have no directional bias here at present, but it is still likely that we will see more movement / volatility here than anywhere else today.
There is nothing important due regarding either the USD or the GBP.