GBPUSD: Bullish on U.K. election polls
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Long Trade Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3081.
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.
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 1.3249.
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.
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 there were hints that 1.3150 may be acting as a pivotal point – support when the price is above it, so it made sense to be more bullish here when the price was above that level and rising. If the price closed above 1.3155 that would have been a further bullish sign.
This wasn’t very useful as 1.3150 turned out not to be much of a pivotal point. The price did not close yesterday above 1.3155 and that was an indication that the strong bullish move we have seen here in recent days has probably paused.
Nevertheless, the British Pound remains the strongest major currency as the British Conservative Party remain strongly ahead in the opinion polls for Thursday’s election. If the polls are correct, Brexit will almost certainly finally happen at the end of January, giving certainty and clarity to the market.
There is probably more upside to come here, but there is no reason why it should happen today. We will probably see it happen tomorrow, Thursday, or Friday. So, I am generally bullish on this pair as it breaks to new high prices.
There is nothing of high importance due today concerning either the GBP or the USD.