Yesterday’s signals were not triggered, as there was no bullish price action at any of the key support levels when they were reached.
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 1.3019 or 1.2959.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3151, 1.3197, or 1.3279.
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 yesterday that we should expect movement to be dominated by rumours of voting intentions throughout the day, and then strong volatility as the vote takes place later. This was a good call. The price is now lower than it was this time yesterday and is close to the middle of the large approximate 300-pips swings up and down we have seen over the past couple of days, with some new support and resistance levels.
Things should quieten down now unless there is a shock development. Overall, the vote yesterday changed nothing. The U.K. will legally leave the E.U. on 29th March with no deal unless a deal is agreed or unless the U.K. and the E.U. agree an extension to postpone the delay beyond 29th March.
The E.U. is in a strong position and there is every sign that the U.K. will be begging on its knees on 28th March leading to either a complete abandonment of Brexit, or an acceptance of a rule taking de facto continuing membership in everything but name. This will boost the Pound strongly but is likely to prove disastrous for the health of Britain’s democracy, and will lead to continuing and strong political instability and extremism in the U.K. which could then negatively impact the Pound later.
I have no directional bias and would play rejections from the far price extremes.
Concerning the GBP, there will be a release of the Annual Budget during the first half of the London session. Regarding the USD, there will be releases of Core Durable Goods Orders and PPI data at 12:30pm London time.