GBP/USD Forex Signal
|Yesterday’s signals were not triggered as there was no bearish price action at 1.2923.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade
-
Go long 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.
-
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 Trade
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
-
Put 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 there should still be some medium-term bearish pressure weighing the price down, but if the price could get established above 1.2923 as the London session got underway, that would be a mildly bullish sign. It was likely to be the day’s pivotal level. That wasn’t a bad call as the price spiked above it but immediately reversed back below, and then continued to move down, o the level was pivotal.
The medium-term bearish trend continues, and the Pound is now looking weaker than the Euro, which is a bearish sign for this pair. I see the support at 1.2828 as likely to be the pivotal level today and would take a bearish bias if the price trades below it for a couple of hours.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be releases of Retail Sales and PPI data at 1:30pm 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.