Yesterday’s signals were not triggered, as none of the key levels were reached that day.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2648.
- 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 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.
I wrote yesterday that technically, the price must break below 1.2648 for the bears to make another significant downwards move, and the price was very far away from this level. If the price could close below it for a couple of hours consecutively during the first half of the London session, I was ready take a bearish bias on this currency pair.
The break only came today, but it came, which is a bearish sign. We are also close to long-term low prices and the odds seem to be strengthening on the hardest of the Brexit candidates, Boris Johnson, becoming the next Prime Minister within the next few weeks. There are no obvious key support levels for about 200 pips below the current price level. The only sign against the bears I can see is the relatively low volatility. There is also a recent bullish inflection point just above 1.2600. I take a bearish bias on this currency pair today until 1.2600 is reached, or until the price closes above 1.2650 for a couple of hours consecutively.
There is nothing of high importance due today concerning either the GBP or the USD.