Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Go long following a very convincing bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2300.
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.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2500 or 1.2600.
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.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
This pair is really the focus of the Forex market right now as the British Pound fell very sharply last week and went through a “flash crash” during last Friday’s Asian session.
When these very large moves happen, identifying support and resistance levels becomes a big challenge. At the moment, the safest thing is probably to look to nearby round numbers as possible turning points.
It is starting to look as though the price is going to stabilize, at least for a while. This will become more likely if this week’s opening low of 1.2390 holds.
Of course, there is a strong downwards trend and a lot of fear over what a hard Brexit will do to the British economy, so the bearish bias is obvious.
There is nothing due today regarding either the GBP or the USD. It is a public holiday in the United States today.