GBP/USD Forex Signal

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered between 8am and 5pm London time today only.

Short Trade

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2818 or 1.2842.

• 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

Long Trades

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2616.

• 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.

• 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

This pair is generally strongly bearish, but we have seen a consolidation over recent hours, and there is now an attempt to rise. It is going to be very difficult for the price to get much higher, as the chart below shows a strong dominance of bearish trend lines and resistance levels. I will take a bearish bias if the price challenges this trend line and 1.2818 unsuccessfully following the release of the British economic data not long after London opens today.

Regarding the GBP, there will be a release of Average Earnings Index data at 9:30am London time. There is nothing important due today concerning the USD.