GBP/USD Forex Signal

Yesterday’s signals were not triggered, as the bearish price action took place above the resistance level I had identified at 1.2676.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered before 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 1.2703.

• 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 Trades

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2600 or 1.2536.

• 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 had become a little stronger as the Government looked as if it had another month to try to get its Brexit deal before Parliament, by which point MPs may be forced to vote for the deal to avoid a “no deal” scenario.

I remained bearish as the technical signs remain bearish, but a period of consolidation now looked most likely over the short term.

I was wrong, the price has actually risen as the U.S. Dollar has weakened. However, the rise is not convincing as there is this strong confluence of resistance centred on 1.2700 which has yet to be broken. This is likely to be today’s pivotal level. A strong failure there would make me take a bearish bias until the London close. After that we have FOMC releases due which could push the price anywhere. There is also British inflation data due during the first half of the London session which could cause a price spike.

Concerning the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be a release of the FOMC Economic Projections, Statement, and Federal Funds Rate at 7pm followed by the usual press conference half an hour later.