GBPUSD: Still bullish above 1.2195
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Long Trade Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2195.
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.
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 Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2259.
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.
Remove 50% of the position as profit when the price reaches 20 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 technically, the price was making higher lows and higher highs, and the bullishness looked solid. Therefore, I was prepared to take a conservative long trade in this currency pair if a good entry opportunity could be found following a retracement to 1.2259. This never set up.
I feel this was an OK forecast as although the price has pulled back to an area below 1.2259, it is still technically bullish above 1.2195, which looks like being today’s true pivotal point. I would take a bullish bias if we get a healthy bounce there. A sustained break below 1.2195 would be a bearish sign.
It seems there is more hope that there will be a Brexit with deals, which is boosting the Pound somewhat despite the long-term bearish trend
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.