GBP/USD Forex Signal

Adam Lemon DailyForex.com

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

Author

Adam Lemon

DailyForex.com

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.

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