Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.3161.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be taken between 8am and 5pm London time today.

Long Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3161.

  • Place the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3350 or 1.3482.

  • Place the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 25 pips in profit.

  • 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 yesterday that I would take a bullish bias if the price can trade for a couple of hours above 1.3161 during the first half of the London session. It did, rising considerably higher over the course of the day, so this was a good call.

The volatility and strength of the bullish move were unusually high, so we are more likely than not to see the price rise again today. Therefore, I will again take a bullish bias if we get a healthy bullish candlestick over the first hour of the London session.

The major cause of the GBP bullishness, with this pair hitting new 10-month high prices yesterday, is a seeming willingness emerging from the British government to delay Brexit beyond 29th March, which begins to call into question whether Brexit happens at all.

GBPUSD

There is nothing of high importance due today concerning the GBP. Regarding the USD, the Chair of the Federal Reserve will be testifying before the House of Congress on its Monetary Policy Report at 3pm London time.

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