GBP/USD Forex Signal
|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 taken before 5pm London time today.
Long Trade
-
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3657.
-
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.
-
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 Trade
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3993.
-
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.
-
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.
I was correct yesterday in seeing the Pound as generally weak, plus anticipating aimless movement during the day. It is notable how this pair is recovering less than the EUR/USD. There is still a considerably way to go before the long-term bullish trend can be truly said to be resuming. There are no key levels nearby which makes forecasting probable directional movement difficult. The situation is made more difficult still by the fact that key British inflation data is due later today. Last month’s number was a surprise, and if the number again comes in high, it should boost anticipation of a rate hike, which paradoxically could boost the Pound, at least over the short term.
There is nothing due today concerning the USD. Regarding the GBP, there will be a release of CPI data at 9:30am London time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.