GBP/USD: Fear of no-deal Brexit again
Yesterday’s signals were not triggered, as there was no bullish price action when the key support level at 1.3180 was reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8 am and 5 pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3180.
- Place the stop loss 1 pip above the local swing high.
- Adjust 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.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3115 or 1.3079.
- Place the stop loss 1 pip below the local swing low.
- Adjust 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.
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 British Pound stood out as the most relatively weak major currency. I thought the price was heading for the next support level below at 1.3180 which held at the end of last week and gave a bullish bounce. I thought we were likely to see some kind of bullish bounce there.
I was correct about the Pound being weak and the price hitting 1.3180, but as it turned out, there was almost no bullish bounce there.
The Pound has been weakened as the British government threatens to walk away from the final talks with the E.U. over the nature of the trade relationship between the U.K. and the E.U.
This weakness looks likely to continue today.
However, if the price can get established above 1.3180, which looks likely to be pivotal, and eventual downwards move will become less likely to take place.
I am prepared to take a short trade here today from a bearish reversal at 1.3180.
There is nothing of high importance due today regarding either the GBP or the USD.