Yesterday’s signals were not triggered, as there was no bearish price action at 1.4168.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Short Trade
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4330.
· 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 25 pips in profit and leave the remainder of the position to ride.
Long Trade
· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4168.
· 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.
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
Yesterday I took a bullish bias, noting that a breakout above 1.4168 could see a strong directional move play out as there were no key resistance levels nearby. This was the correct approach as the breakout happened and the price moved up quite strongly. The move is with trend but was helped along by Mnuchin’s comments dialling down a potential trade war between China and the U.S.A. which has helped “risk-on” assets such as the Euro, the British Pound, and stocks.
I take a bullish bias again today, in line with the long-term bullish trend in this currency pair, but note that the price is consolidating just below the psychological level at 1.4250, so there might not be much more of a rise over the short-term.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time.