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 may only be taken between 8am and 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3159 or 1.3019.
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 1.3249.
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 Brexit was the key driver, as usual, with this week looking to be truly crucial in determining whether the U.K. leaves the E.U. and if so upon what terms, although the real action will be later in the week. It seemed that the odds of a “No Deal” Brexit were looking stronger, which has weakened the Pound, so short trades (at least above 1.3000) were probably going to be more successful than long trades, in the current environment.
This wasn’t a bad call as the price has not gone up, but movement has been slight in line with the rest of the market. The British Parliament yesterday voted to take control of the Brexit voting process, which means that the balance of power is shifting towards a very soft Brexit or even no Brexit at all. It seems almost certain the departure date will be put back from 29th March successfully, but the price has not rise yet. We can probably expect the price to continue to consolidate until Parliament passes something significant later this week. A break above 1.3350 at that stage would be a very bullish sign, conversely, 1.3000 is the level to watch for the start of a major bearish movement.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time today.