GBP/USD Forex Signal

Adam Lemon DailyForex.com

Yesterday’s signals were not triggered, as no key levels were 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

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the upper channel trend line shown in the price chart below which currently sits at about 1.2820.
Place 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.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

Long Trade

Go long 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.
Adjust 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 yesterday that the Pound looked weak as the British government suffered some Parliamentary defeats yesterday which suggested they were at serious risk of losing control of the Brexit process. I remained bearish on this pair and would take a bearish bias at a strong break below the price channel shown in the chart below, or at a clear bearish reversal at the upper channel trend line. Neither of these scenarios played out, but the picture is even a little more bearish today and the price has fallen after spiking up and is now trading lower than it was 24 hours ago. I take exactly the same approach as I did yesterday.

There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.

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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