Yesterday’s signals were not triggered, as the resistance level at 1.3150 was not hit until after the London close.
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.
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 1.3150 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 yesterday that the price of this pair was likely to consolidate in swings until some clarity emerges over what is going to happen with Brexit. The British Government made a major policy reversal yesterday, despite the opposition of its own party and it seems a majority in the Cabinet too. The Government will now request an extension to the Brexit date from the E.U. but it remains unclear if it will be granted and on what terms. It will probably be granted.
The soft/no Brexit news pushed the Pound up to just below the resistance at 1.3150 where it is now consolidating.
The price remains stuck in the middle of a long-term range, dominated by a political process which seems far from resolved. As such levels can be useful for trading reversals from extremes, as we are likely to see ranging price action over the coming days until there is a major new development which will have to come some time before 12th April.
There is nothing of high importance due today concerning either the GBP or the USD.