Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3080.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may be taken between 8am and 5pm London time today only.
Long Trade
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2959.
- Put the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is 25 pips in profit.
- Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
Short Trade
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3122.
- Put the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 25 pips in profit.
- Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
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 due to the bullish invalidation of the former resistance level at 1.3150, the price looked likely to move higher over the short term. However, the price was well-within its medium-term range, with the 1.3350 being the really key long-term resistance level for bulls to watch.
I was wrong, the price has actually moved down despite the British Government’s pivot towards soft Brexit and a long extension. Yet the Pound remains bought at and below 1.3000.
There is a lot of volatility here, you can try to trade the swings, but the price will be very vulnerable this week to political developments as we approach Friday’s Brexit deadline. When an extension is formally agreed, expect the price to rise, and it will probably remain supported at or a little below 1.3000.
There is nothing of high importance due today concerning either the GBP or the USD.