Yesterday’s signals were not triggered, as there was no bearish price action at 1.3128.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3185.
Put 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3030.
Put 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
I wrote yesterday that I had no directional bias, but that if the price remained capped by 1.3128 for several hours, it would probably fall. That level broke very quickly as the London session got underway, and the price rose to nearly reached the next resistance level at 1.3185, so it was a pretty good call as a pivotal level for the day.
The Pound remains dominated by machinations over a possible Brexit deal, but there is a hint of the possible beginning of a bullish trend. Despite that, the action is quite flat and unpredictable, so it remains hard to trade. The main thing to watch out for will be a break above the next resistance level of 1.3185, as there would then be nothing stopping the price from rising considerably higher. Therefore, I would take a bullish bias above 1.3185 today.
Concerning the GBP, there will be a release of Average Earnings Index data at 9:30am London time. There is nothing important due today regarding the USD..