GBPUSD flirts with long-term lows as Brexit deadlock remains
Yesterday’s signals were not triggered as the resistance level at 1.2970 was never quite reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trade
Go long at 1.2828.
Place 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 1.2924 or 1.2970.
Place 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 looked likely to fall further, but there was key U.K. economic data due early in the London session which might produce a surprising mood. If the price rejected 1.2970 and acted bearishly in the hour following the U.K. data release, I would take a bearish bias on this pair.
The price has a long way it may fall before finding any key support levels. Below 1.2900, we would be in the territory of a long-term bearish trend.
This was a good call as the price fell further over the past day, although the level at 1.2970 was never reached. The picture now looks more bearish as the long-term low at about 1.2900 is in danger, and the price has printed new lower resistance at 1.2924. If there is a bearish rejection following a retest of this level on above-average volatility I will take a bearish bias today.
The Pound is suffering as there is no sign of any real progress in the Parliamentary deadlock over Brexit – still.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.