Yesterday’s signals were not triggered, as the price got established below 1.2923 before the London session got underway.
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 following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2828.
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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 1.2923.
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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.
I wrote yesterday that on a quiet Monday, most action in the Forex market was likely to be in this pair, but direction over the short-term looked unpredictable. There was relatively high volatility here, with the price continuing to fall, as did the EUR/USD. The falls in the EUR and GBP were probably driven by the general talking-up of the chance of a “no deal” Brexit, but I see this as just a negotiating tactic adopted by both sides who are very likely to strike a deal close to 29th March.
The price has been very flat for the past several hours, suggesting direction is again impossible to forecast over the short term. The best I can say is that the support level at 1.2828 looks very pivotal, so if there were a strong bullish bounce there later I would take a cautiously bullish bias.
Concerning the GBP, the Governor of the Bank of England will be giving a minor speech at 1pm London time. at 9:30am London time. Regarding the USD, the Chair of the Federal Reserve will be making a minor speech at 5:45pm.
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