Last Monday’s signals were not triggered as there was no bearish price action at 1.2930.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3044 or 1.3085.
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.
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 H1 time frame immediately upon the next touch of 1.2930 or 1.2697.
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.
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 Monday that the political struggle over Brexit was uncertain and also likely to determine the short-term movements in the British Pound, making this pair very hard to trade.
I was correct that volatility would remain high, with more movement in this pair than in any other major pair.
There seems to be a long-term bullish trend emerging, so I would be prepared to take a bullish bias if there was a strong bounce at the nearest support level of 1.2930, or alternatively if the price moved strongly to trade above 1.3000 for an hour or so during the first half of the London session.
There is nothing important due today regarding the USD or the GBP.