GBPUSD: Bearish below 1.2200
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2169 or 1.2111 or 1.2067.
Put 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.
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 Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2266 or 1.2288.
Put 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.
Take off 50% of the position as profit when the price reaches 20 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
There is a bearish trend here over both the medium and long terms. However, over the short-term, the round number at 1.2200 has been very solidly defended by bulls, so I see that as a pivotal point which bears would want to see broken down. The key driver in this pair lately has been the growing realization that the British Parliament probably will be unable to prevent Brexit in just 21 days, even a no deal Brexit.
Focus should shift away from Brexit today as we get some important British data, notably GDP numbers, but Brexit will remain the key driver over the next three weeks at least.
I would take a bearish bias on this currency pair today if we get two consecutive hourly closes below 1.2200.
Concerning the GBP there will be a release of GDP and Manufacturing Production data at 9:30am London time. Regarding the USD, there will be a release of API (inflation) data at 1:30pm.