Yesterday’s signals were not triggered, as there was no bearish price action at 1.3097.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 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 1.3188 or 1.3151 or 1.3097.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3279 or 1.3350.
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 I would be prepared to take a bearish bias if the price would be trading below 1.2950 on relatively high volatility by 9am London time. I was completely wrong about the direction but it was enough to stay out of trouble, as the low of the day came early at about 1.2959 before the price shot up from there on rumours, followed by news, that the British Government had secured a slight change to the E.U.’s offered deal which makes it more likely that the deal will pass through the British Parliament this evening, which would then essentially make Brexit happen and take the whole issue off the table politically at the exit date of 29th March.
The price respected the resistance at 1.3279, but we can now expect movement to be dominated by rumours of voting intentions throughout the day, and then strong volatility as the vote takes place later. If the vote loses, the Pound will fall sharply, but may rise even more strongly if Parliament then votes to ask the E.U. for a delay to Brexit. If the vote wins, the Pound will rise very sharply.
Concerning the GBP, there will be a release of GDP and Manufacturing Production data at 9:30am London time, followed by the Parliamentary vote on the draft Brexit deal at some time in the evening. Regarding the USD, Regarding the USD, there will be a release of CPI data at 1:30pm.