GBPUSD: Bearish
Last Thursday’s signals were not triggered as the resistance level identified at 1.3090 was not reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 1pm London time.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3036 or 1.3094.
Place 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 last Thursday that I thought that bears would be wise to wait for the price to break below 1.2950 and bulls would be wise to wait for the price to get established above 1.3090. In the meantime, price movement looked hard to predict within that range from 1.2950 to 1.3090.
This was a good call, as the price rejected the 1.3090 area and turned bearish, so I was correct about the upper pivotal point. The price is now falling and approaching the 1.2950 level. So, my technical analysis from Thursday still stands.
The Pound is more bearish as there are only 10 days left before the U.K. leaves the European Union and the British Government has signalled that it is prepared to see the U.K.’s economic regulations diverge significantly from that of the E.U. which implies a somewhat “harder” Brexit, and the markets see this as negative for the Pound.
As it is a Monday, typically a slow day, and also a holiday in the U.S.A., I think that 1.2950 will probably hold today but that we may well see the price get established below that level tomorrow.
I take a generally bearish bias and would only look for short trades in this currency pair right now.
There is nothing of high importance due today concerning either the GBP or the USD. It is a public holiday in the USA today.