Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2918.
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Put 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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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 Trades
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2708 or 1.2618.
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Put 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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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 last Thursday that I would avoid trading this pair over the short-term, and that I saw a bullish outcome preceded by relatively strong volatility as Tuesday’s Brexit vote approached. In fact, the price has continued to hold up, as far from believing the scaremongering over a “no deal” Brexit, markets are seeing that Parliament is going to act instead to prevent a “no deal” Brexit by any means necessary, quite possibly by even overthrowing the referendum result of 2016. These outcomes should boost the Pound, which is why even if the Government heavily loses tomorrow’s vote, the Pound is still likely to rise.
Technically the picture is firmly bullish, with key support continuing to hold near 1.2700. I would take a bullish bias if we get a firm bullish bounce at the nearest support level of 1.2708 later today.
There is nothing of high importance due today concerning the USD. Regarding the GBP, the British Prime Minister has announced she will be making a statement at 3:30pm London time.
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