Last Thursday’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 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 1.3000.
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 1.3161.
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 there were some signs of the price finding support and if we saw a strong rise of at least 40 pips between 8am and 9am London time, I would expect a further rise to at least 1.3100. Such a rise did occur, but the price failed to rise really any further over the following hours before selling off again, so this wasn’t a particularly good call, although there were a few hours where it was possible to get out without incurring much of a loss or any loss at all.
The price action looks very dead right now, with the Euro more in the spotlight at present. The action is still generally bullish but unpredictable as the fight over the terms of Brexit continues with no resolution. It now seems that there will be no vote in the British Parliament until 12th March meaning that the pro-EU ministers may resign and make a move before that, which could send the Pound higher if it looks like there is a chance it could derail Brexit.
I have no directional bias on this pair and await political developments.
There is nothing of high importance due today regarding the USD. Concerning the GBP, the Governor of the Bank of England will be holding a Press Conference at 10am London time.