Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2959.
- 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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3073 or 1.3122.
- 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
Although we have had a short-term resolution of Brexit, with an extension now agreed until October, this has not boosted the Pound, although buyers have kept this currency pair above the psychologically important 1.3000 round number. However, the long-term action is starting to look bearish, with the price in a consolidating triangle and looking heavy, so it seems that the more likely outcome is an eventual break below 1.3000 and 1.2959. The supportive trend line is currently sitting right on 1.3000 so if the price gets there, the reaction will be interesting. The first touch is likely to be a bullish bounce which could probably be scalped successfully. That 1.3000 level is likely to be pivotal today and I would be bearish if the price can trade below it for a couple of hours today.
Concerning the GBP there will be a release of Retail Sales data at 9:30am London time. Regarding the USD, there will be a release of Retail Sales data at 1:30pm.