Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 1.3143.
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, 1.2877, or 1.2828.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3136 or 1.3249.
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 if there were good political news today for a deal, there would be a long trade opportunity. I would have taken a bullish bias if the price could close for a couple of hours above 1.3250.
The price was unable to do so and there was no deal, just another failed Parliamentary vote on the deal which took place on Friday. The anticipation of that defeat sent the Pound lower Thursday, as after it broke below the former support, it continued downwards. It seems there is some buying at or just below the psychological level at 1.3000 which has pushed the price up a little since this week opened.
Everything with this currency pair is highly likely to depend upon the political resolution of Brexit, which is now likely to happen at some point before 12th April. A resolution will be likely to start a major directional movement, so it is probably best to either stand aside meanwhile or play reversals from extremes such as 1.3250 or 1.2959.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of Retail Sales data at 12:30pm London time followed by ISM Manufacturing PMI at 2pm.