Last Thursday’s signals were not triggered as none of the key levels were ever reached, although the resistance identified at 1.3000 was only 4 pips above the high of the day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2923.
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.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
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.
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 a break below 1.2930 which held after the Bank of England’s release was likely to lead to still lower prices, though the terms of Brexit remained the key driver here. This was a fairly good call as the price bounced back strongly after the release after initially falling quite heavily.
The price looks weak but is again held by support at about 1.2923. There are key data releases concerning the GBP due early today which are likely to affect the price. On a quiet Monday, most action in the Forex market is likely to be in this pair today, but direction over the short-term looks unpredictable.
There is nothing of high importance due today regarding the USD. Concerning the GBP, there will be releases of GDP and Manufacturing Production data at 9:30am London time.