GBPUSD: Increasingly bullish as British Parliament votes to stop Brexit/election moves
Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at 1.2169 was reached, and 1.2252 was reached after the end of the London session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2169 or 1.2110.
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 Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2252 or 1.2364.
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 political developments in the British Parliament were going to be the key driver for the Pound in general, and for this currency pair in particular.
I was correct about this and also on my forecast that the British government would attempt to call an election, however I should have been more optimistic that this would cause bullish directional movement, as this political factor caused the Pound to rise strongly again yesterday.
The price reached all the way up to the strong resistance level at 1.2252 which has held and produced a bearish reversal. Technically, it looks as if the price will now fall from here, at least for a while. However, longer-term movement will certainly depend upon what happens concerning Brexit.
It now seems that the British government hopes to call the opposition’s bluff over calling an election by allowing the anti-no deal bill to pass. The government would then hope to win an election on 15th October and then right away win a vote on its Brexit policy with more pro-Brexit MPs.
It is hard to say what will happen next as the political situation is extremely fluid.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 4pm.