Last Thursday’s signals produced a profitable long trade following the bullish inside candlestick on the hourly chart which rejected the support level identified at 1.3183.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Short Trades
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3128 or 1.3185.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Long Trade
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3030.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
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 there was room for the price to rise further without meeting friction, although there was a psychological level at 1.3250. I was ready to take a bullish bias if the price could break above that area, but I would remain generally bullish above 1.3183 and a little bullish above 1.3128. This was a good call as the price remained above 1.3183 and kept rising from there.
The price has pulled back. There is little trend and low volatility. The price here is mostly driven by the British Pound and news on a potential Brexit deal between the U.K. and the E.U. and I have no directional bias today. If the price remains capped by 1.3128 for several hours, it will probably fall.
There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.
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