Yesterday’s signals produced a losing long trade from the bullish bounce at 1.3138.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken 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 1.3137.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3063 or 1.2930.
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 a deeper retracement below 1.3135 was now much more likely to happen. However, I would still be most interested in any long trade set-ups.
This was accurate in the sense that the price has made a deeper retracement below 1.3135, but the bullish bias at the bounce there did not work out well.
The British Parliament voted last night to not delay Brexit but to instead go back to the E.U. and ask them to amend the Brexit deal. This knocked the Pound down and the E.U. is responding publicly by refusing to change a thing. What we have now politically is a game of “chicken” between the British Government and the E.U. – who will back down first in the face of no deal, which is the default legal position on 29th March? Everything politically which happens to promote no deal will hurt the Pound and vice versa, so Brexit will continue to dominate this pair and there will continue to be high volatility with big ranges.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of the FOMC Statement and Federal Funds Rate at 7pm London time, followed by the FOMC Press Conference half an hour later.