GBP/USD Forex Signal | DailyForex

GBPUSD: More bearish on Hard Brexit fears

Last Thursday’s signals were not triggered, as the bullish price action took place a little way below 1.2618.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm London time today only.

Long Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2648.

  • 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 ride.

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2828.

  • 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 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 last Thursday that if the price closed below 1.2618 at 9am London time, or for a couple of hours consecutively after that, I would take a bearish bias on this pair. Fortunately, this situation was narrowly avoided, as the price subsequently rose after making a multi-month low price close to 1.2600.

The resignation of the British Prime Minister had a relatively minor effect, but there is now a higher chance of a no deal Brexit, with Brexiteer Boris Johnson now the betting market’s “most likely to win” candidate. Every news in favour of a pro-Brexit candidate to replace PM May will be likely to push the Pound down. Also note the fact that there is a long-term bearish trend in the Pound now, so bears have the wind blowing in their direction.

Technically, the price must break below 1.2648 for the bears to make another significant downwards move, and the price is not very far away from this level. If the price can close below it for a couple of hours consecutively during the first half of the London session, I would take a bearish bias on this currency pair.GBP/USD Forex Signal | DailyForexThere is nothing of high importance due today concerning either the GBP or the USD.

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