GBP/USD Forex Signal
|Last Thursday’s signals were not triggered, as there was no bullish price action at 1.2828.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trades
-
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2877 or 1.2828.
-
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.
-
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 Trade
-
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
-
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.
-
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 I saw the support at 1.2828 as likely to be the pivotal level for the day and would take a bearish bias if the price traded below it for a couple of hours. It did so, and by the end of the day was approximately another 20 pips lower so this was no a bad call. However, Friday saw the Pound recover strongly as remain forces regrouped and fought back within the governing U.K. Conservative Party, which has pushed the price up again. The problem is that there is a confluence of partly ambiguous trend lines between about 1.2950 and 1.3000 so although we have a short-term bullishness, it is difficult to see the price as able to rise much further. This means we might get a bearish turn on relatively high volatility from the highs. I have no directional bias, I just see this pair as likely to make the most movement today.
There is nothing of high importance due today regarding the GBP. Concerning the USD, it is a public holiday in the U.S.A.
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.