GBP/USD Forex Signal | DailyForex

Last Thursday’s signals were not triggered, as the bullish price action took place below 1.2877.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2828.
  • Put 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 run.

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2963 or 1.3005.
  • Put 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 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.

GBP/USD Analysis

I wrote last Thursday that the trend in this pair was definitely bearish, but this was probably going to be better exploited in the EUR/USD currency pair than here. This was a good call, as the Euro has been a little weaker than the Pound since then, but it didn’t really turn out to be a big deal.

This pair is still in a similar position technically to the EUR/USD currency pair but is more bullish. The bulls are trying to push the price up this morning, but I doubt that they will succeed to get the price above 1.3005 today, at least not for long.

We do not have a clear long-term trend in this pair and the support above 1.2800 is still providing a bid. It does still look as if the line of least resistance is downwards, but I would still prefer to be short of EUR/USD than GBP/USD.

There may be a good short trade opportunity if the price rejects the 1.2963 area decisively early in the London session – there is a confluence of resistance there.

GBP/USD Forex Signal | DailyForex

GBP/USD Forex Signal | DailyForexThere is nothing important due today concerning the USD. Regarding the GBP, the Governor of the Bank of England will be making a minor speech at 9:10am London time.

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