Yesterday’s signals were not triggered, as the bearish price action took place some way above the resistance level identified at 1.3136.
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 1.2959 or 1.2877.
- 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
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3150 or 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 everything with this currency pair was highly likely to depend upon the political resolution of Brexit, which was now likely to happen at some point before 12th April. A resolution would probably start a major directional movement, so it was probably best to either stand aside meanwhile or play reversals from extremes such as 1.3250 or 1.2959.
Neither of these extremes were hit, but the price did make a clear inflective bearish turn at 1.3150 so that is a new and obvious resistance level.
The British Parliament yesterday failed to approve a single one of the potential indicative Brexit options, leaving Brexit in a state of complete uncertainty. The price of this pair is likely to consolidate in swings until there is some clarity here, so I can’t take any directional bias.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of Core Durable Goods Orders data at 12:30pm London time.