Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3155 or 1.3220.
- 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.
Long Trades
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2980.
- Place the stop loss 1 pip below the local swing low.
- 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.
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
We noted in our previous analysis that any gains for the British Pound would be selling opportunity in this pair. The future of the Brixet is still unclear, also is the survival of May’s government. May failed during its meeting with the EU last week to reach a solution on the Irish border issue, which is the biggest obstacle to the completion of a post-Brixet deal due in March. The pair broke down from the 1.3276 level to the support level at 1.3055 during Friday's session, losing more than 200 pips and opened this week at 1.3076 and continues to monitor the market reaction to last week’s meeting. Any break below the 1.3000 psychological level will affect any bullish outlook for the pair and will increase bearish momentum, as the pair can test more lower levels.
There is nothing important due today concerning the USD. Regarding the GBP, there will be the release of the Financial Stability Report from the Bank of England.