GBPUSD: Weakly bullish within wide range from 1.2767 to 1.3000
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5pm London time today only.
Long Trade Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2767.
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 Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3041.
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
I wrote yesterday that the technical picture showed a very weakly bullish short-term price action towards the lower end of a huge price range stretching from 1.2767 to about 1.3000 above. The only opportunity I saw in this pair was fading a spike to either 1.2767 or the 1.3000 area.
This did not happen, but I was correct to see weakly bullish action, as the price has risen. This is due mostly to strength in the Euro and weakness in the USD, so this pair is not in strong market focus right now. However, the fact that the UK will have an election in December and polls are showing a government victory strong enough to deliver a Brexit deal by the end of January 2020 is producing some certainty which is helping the Pound strengthen a little.
I would leave this pair alone today as we are far from any key levels, but I think the price is more likely to end the day higher than lower from where it was at the start of the London session earlier.
There is nothing of high importance due today concerning either the GBP or the USD.