Yesterday’s signals produced a losing long trade from the bullish bounce at the support level identified at 1.2930.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
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Go long immediately upon the next touch of 1.2697.
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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.
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
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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.
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 picture remained bearish, but the price was very close to key support at 1.2930 which was likely to be the day’s pivotal level. I would take a bearish bias if the price was below 1.2930 at 9am London time as there was no support for a long way below that, so we could expect the price to fall further.
This was a good call as 1.2930 was and remains the pivotal level for this pair. It has continued to hold but there is a lot of weight pressing down. It is likely to hold until the Bank of England’s release due later which will probably give some direction. A break below 1.2930 which holds after the release is likely to lead to still lower prices, though the terms of Brexit remains the key driver here.
There is nothing of high importance due today regarding the USD. Concerning the GBP, the Bank of England will release its Inflation Report, Monetary Policy, Official Bank Rate & Votes at Noon London time.
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