Last Thursday’s signals were not triggered, as 1.3063 was not reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
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.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3161.
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.
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 I would be very careful about taking any long trades for significant profits. If the price could remain above 1.3137, I thought it would be a mildly bullish sign. This was a reasonably good call as the price struggled to rise at that level and then slowly moved down from there.
The picture now is more bearish, with the U.S. Dollar broadly strong although not up by a large amount. The Pound has been quite weak as the prospects for a very soft Brexit are diminishing. Technically, the chart below is dominated by a medium-term bearish trend line which is holding the price down, and there are no key support levels until 1.3000. Absent any political news, it looks as if this pair is likely to continue to slowly fall over the course of the day. However, it may be dangerous to take short trades as the price is not far from 1.3000 and some bullish inflection points slightly above the round number which have occurred over recent days.
There is nothing of high importance due today regarding either the GBP or the USD.