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Yesterday's signals generated a profitable short trade after the expected bearish rejection of the resistance level at 1.3085. However, this trade only gave a little more than the minimum of 25 profit pips.
GBP / USD signals of the day
Risk 0.75% per transaction.
Transactions can only be made before 5 pm London time.
Short trades
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Short entry following a bearish trend reversal on chart H1 immediately after the decline of 1.3143 or 1.3162.
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Place the stop loss 1 pip above the highest local swing.
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Adjust the stop loss to reach the breakeven point once the transaction generates a profit of 25 pips.
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Remove 50% of the position as profit when the price reaches 25 pips and leave the rest of the position to run.
Long trades
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Long entry following an uptrend on the H1 chart immediately after the next hit of 1.3085 or 1.3029.
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Place the stop loss 1 pip below the local minimum.
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Adjust the stop loss to reach the breakeven point once the transaction generates a profit of 25 pips.
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Remove 50% of the position as profit when the price reaches 25 pips and leave the rest of the position to run.
The best method for identifying a clbadic "price reversal" is to close a candle on time, such as a pin, a doji, an outside or even just a sinking candle with a top fence. You can exploit these levels or areas by observing the evolution of prices at given levels.
GBP / USD Analysis
I wrote yesterday that there was still a bullish momentum in the near term as the pound sterling remained relatively optimistic about reaching an agreement on Brexit. However, this upward movement faces a long-term downward trend and a group of levels of resistance that could hinder progress.
It seemed that 1.3035 would probably be the pivot level. It was only a few glitches on the bottom of the day.
The chart below shows that the pound has risen sharply and steadily since the beginning of the month and as the dollar's weakness persists, it is likely that the environment will be on the rise today. However, the dynamics may slow down and there are two levels of resistance close to overhead. If the price is well over 1.3162, he will have no resistance to keep him from running, which would be a very optimistic sign. It is very likely that the price will consolidate below this area until the FOMC is released tomorrow. I would take a bullish bias above 1.3162 today.
There is nothing important today due to the GBP or the USD.
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