Yesterday’s signals were not triggered as the bullish and bearish price action took place just beyond the two key levels given yesterday.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 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 1.3143.
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 1.3249.
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 yesterday that the support level at 1.3189 was likely to be today’s pivotal level, but even if it broke down, I doubted that we would see much of a downwards move. This was a good call as we really have just seen runs to either side of the consolidative area, although the nearest support is not some 40 pips lower than it was.
The British Parliament voted to extend the Brexit date to either 12th April or 22nd May but failed to show a majority for any potential course of action. There is still no majority for the deal that the E.U. has offered, but Parliament is shifting in that direction. If the deal is passed, we can expect the Pound to rise sharply – in fact, if any course of action is agreed by Parliament except “no deal”, the Pound will rise. This is why I take a medium-term bullish bias and I note there is also a weak but visible long-term bullish trend.
If there is good political news today for a deal, there would be a long trade opportunity. I would take a bullish bias if the price can close for a couple of hours above 1.3250.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time.