GBP/USD Forex Signal
|Yesterday’s signals produced an excellent long trade upon the bullish price action at 1.3879, with a small hourly inside candle giving a tight entry. It would be wise to have booked profit by now.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4168.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Long Trades
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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3940 or 1.3888.
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Put the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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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.
Yesterday I noted a small zone of support from 1.3888 to 1.3879 and that if it held into the London open, that would suggest that the price will go on to make new highs later today. The level did hold and produced an eventual strong upwards movement as New York came online. This bullish move may have further to run but could be due a deeper pull-back as London opens. There are no key resistance levels for a long way above, but the psychologically important 1.4000 area is close by and might prevent any further short-term rise in the price.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Retail Sales and PPI data at 12:30pm London time, followed later by Crude Oil Inventories at 2:30pm.
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