GBPUSD: Today’s pivotal point likely at 1.2833
Yesterday’s signals were not triggered, as there was no bearish price action at 1.2871.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Long Trade Ideas
⦁ Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2833, 1.2800, or 1.2767.
⦁ Put 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.
⦁ 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 Trade Ideas
⦁ Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2924.
⦁ Put 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.
⦁ Take off 50% of the position as profit when the price reaches 20 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 it seemed clear that the day’s pivotal point following the recent bullish retracement was at 1.2800. This was a great call and waiting for the price to get established above that level gave a good long trade opportunity. The price was moving up when suddenly the Brexit Party announced that it would not contest seats won by the governing Conservative Party at the previous election. This has made an outright Conservative victory more likely on 12th December. Betting markets are now giving this outcome a 60% probability and it has boosted the Pound somewhat. The USD has made a comeback generally over recent hours, but I see the support below at 1.2833 as likely to be pivotal today. Therefore, I would take a long trade bias if that price is reached during the first half of today’s London session and there is a firm bullish bounce there.
There is nothing of high importance due today regarding either the GBP or the USD.