GBP/USD: Parliament Pushes Up Pound - 4 April 2019

Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.3150.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm London time today only.

Long Trades

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2959 or 1.3080.

• 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

• Go short 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 price remained stuck in the middle of a long-term range, dominated by a political process which seems far from resolved. The Pound is a little more bullish now that the British Parliament has mandated that the Government request a delay to the Brexit date beyond 12^th April, although this was the Government’s policy anyway, and the measure only passed Parliament by a single vote.

Technically, we have had a bullish invalidation of the former resistance level at 1.3150, and the price looks likely to move higher over the short term. However, the price is well-within its medium-term range, with the 1.3350 being the really key long-term resistance level for bulls to watch.There is nothing of high importance due today concerning either the GBP or the USD.