Yesterday’s signals were not triggered as the bullish reversal at 1.3197 came too late, but the support level identified there held nicely.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered before 8am and 5pm London time today only.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3197 or 1.3151.

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

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

  • 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 Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3350, 1.3482 or 1.3521.

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

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

  • 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 it was hard to see a scenario under which the Pound did not rise soon, however it was likely to be quite static over the day. I also took a medium-term long bias. This was a good call as the major move over the past 24 hours has been bullish, from the good support at 1.3197, but the price has essentially consolidated between support and resistance, in fact the round number at 1.3300 has been acting as a cap on the price for a while.

Brexit is the key driver of price, of course, but the process has been thrown into confusion yet again by the Parliamentary bureaucracy ruling out a further vote on the same Brexit deal offered by the E.U. and Britain’s exit (if it ever happens at all) will surely be postponed beyond 29th March.

Further news on Parliament’s next move is needed but a strong bullish break above 1.3350 is likely to be significant if it ever comes and lead to much higher prices.

I am still taking a medium-term bullish bias.

GBPUSD

There is nothing of high importance due today concerning the USD. Regarding the GBP there will be a release of Average Earnings Index data at 9:30am London time.

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