Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3030 that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3082, 1.3143 or 1.3162.
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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3005.
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
I wrote last Thursday that there was short-term bearish momentum and I thought we were likely to see lower prices still over the coming hours, at least to 1.3030. This was a great call as the price did continue to fall quite strongly during the entire London session and reach that level.
We are now seeing a bullish pull back after the price got close to the psychologically important 1.3000 level, with early signs of a break above the resistance level at 1.3082, which suggests a further bullish movement today to slightly higher prices. There is not really any long-term trend to exploit in this pair and the British Pound is very vulnerable to politics or rumours regarding the terms of Brexit, so I have no directional bias today.
There is nothing important due today concerning either the GBP or the USD.