GBP/USD Forex Signal
|Yesterday’s signals were not triggered, as the level at 1.3350 was never reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only 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 1.3145.
-
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.
Short Trade
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3350.
-
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.
GBP/USD Analysis
I wrote yesterday that the price would now probably consolidate in the absence of any further political shocks, meaning that was is not likely to be a good trading opportunity here today. I had no directional bias. I cannot see any reason to change this approach as the price is now consolidating in the middle of a very wide range between the nearest support and resistance levels, neither of which have much chance of being reached. There is a lot of focus on political uncertainty in the U.K. which may affect the Pound. For these reasons, it is probably best to avoid trading this currency pair today and I have no directional bias.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time. Concerning the GBP, the Governor of the Bank of England will be giving a speech at 4:35pm
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.