Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
Put 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.
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.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3161.
Put 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.
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 it was hard to say where the price would go over the short-term, but the line of least resistance now looked to be upwards, so the bulls seemed to have an edge. I was ready to be bullish if the price was trading at or above 1.3100 at 9am London time, and this didn’t happen, so the call was enough to keep bulls out of trouble.
The price action has been bearish over the last day or so but has not reached the nearest support level at 1.3000 yet. There are some signs of the price finding support and if we see a strong rise of at least 40 pips between 8am and 9am London time, I would expect a further rise to at least 1.3100 but that level may start to act as solid resistance.
The British Pound is highly sensitive to political developments as the next 5 weeks are likely to determine on what terms the U.K. leaves the E.U. or even whether it leaves at all.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.