Last Thursday’s signals were not triggered, as there was no bullish price action at 1.2828.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2877 or 1.2828.
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 I saw the support at 1.2828 as likely to be the pivotal level for the day and would take a bearish bias if the price traded below it for a couple of hours. It did so, and by the end of the day was approximately another 20 pips lower so this was no a bad call. However, Friday saw the Pound recover strongly as remain forces regrouped and fought back within the governing U.K. Conservative Party, which has pushed the price up again. The problem is that there is a confluence of partly ambiguous trend lines between about 1.2950 and 1.3000 so although we have a short-term bullishness, it is difficult to see the price as able to rise much further. This means we might get a bearish turn on relatively high volatility from the highs. I have no directional bias, I just see this pair as likely to make the most movement today.
There is nothing of high importance due today regarding the GBP. Concerning the USD, it is a public holiday in the U.S.A.