Last Thursday’s signals produced a losing short trade following the bearish inside candlestick which rejected the resistance level at 1.2918.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2930.
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.
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 last Thursday that it seemed as if the resistance at 1.2918 was not going to be breached, and that we would probably get lower prices. I was wrong, the price actually rose as markets began to believe there was a greater chance of Brexit being overturned. Brexiteers have been fighting back, so the internal political struggle in the U.K. over Brexit is determining whether the price moves up or down – up for a softer or no Brexit, down for a harder Brexit or Brexit at all.
This makes it difficult to use technical to trade this pair, with the exception of knowing that volatility is likely to remain very high.
I have no directional bias on this pair today.
There is nothing important due regarding either the USD or the GBP. It is a public holiday in the USA.