GBP/USD Forex Signal | DailyForex

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trade

  • Go long at the next touch of 1.2828.
  • Place 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 1.2963 or 1.3005.
  • Place 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 we did not have a clear long-term trend in this pair and the support above 1.2800 was still providing a bid. It did still look as if the line of least resistance was downwards, but I would still prefer to be short of EUR/USD rather than GBP/USD.

As it happened, the price moved little yesterday, and the price has failed to break above the bearish trend line. If the short-term downwards movement persists over the first hour of the London session on at least slightly above-average volatility, I would take a cautious bearish bias. Yet I note there is no real trend here, so action can be messy and direction relatively unpredictable – EUR/USD seems to be moving more smoothly right now.

GBP/USD Forex Signal | DailyForex

There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

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