GBP/USD: Pound not in market’s focus
Last Thursday’s signals were not triggered, as there was no bearish price action at either 1.2920 or 1.2952.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered prior to 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3305 or 1.3379.
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 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3101 or 1.3047.
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 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 last Thursday that we would now probably see choppy price action as bulls defended 1.2859 and bears defended 1.2900. I was wrong, the bulls won as we saw a weakening of the USD due to the coronavirus outbreak which is hitting the dollar hard, regardless of technical analysis and economic data considerations which suggested resistance to higher rises.
The market is dominated strongly by fear at present, driving a flow into non-USD safe haven currencies, which takes this currency pair out of focus for the time being. However, the USD remains very weak, with only the Canadian Dollar showing more weakness, so if you want to trade this pair, it will make most sense to look for long trades on shorter time frames, especially following any bullish bounce at an identified support level. Unlike some other currencies, the Pound is not showing any long-term strength.
There is nothing of high importance due today regarding either the GBP or the USD.