Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3286 or 1.3221.
Place 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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3398 or 1.3456.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 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
This pair sold off quite strongly from 1.3456 at the end of last week and is at a level where it must be said that the long-term bullish trend is over. There is still a lot of volatility, so it is at the heart of the Forex market and it remains interesting to trade. In the absence of a trend, rejections of key levels are likely to be the most profitable trading approach here. Despite the outline of a Brexit deal finally emerging, there is so much political uncertainty in the U.K. that the Pound cannot really benefit from this development as it might be expected to. If the price is above 1.3450 at 9am London time, it will probably go higher.
There is nothing important due today concerning either the GBP or the USD.