GBPUSD Forex Signal

Adam Lemon DailyForex.com

Yesterday’s signals were not triggered, as the resistance level at 1.3983 did not start to produce a bearish reversal until after 5pm London time.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Short Trades

Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3997 or 1.4037.
Put 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

Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3879 or 1.3822.
Put 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 I had no directional bias because although the Dollar was strong, the Pound was also relatively strong, so sentiment was against the advantage. The pair did spend most of its active hours grinding upwards, and even broke above the former resistance level about 20 pips below the key psychological level of 1.4000. The technical picture is looking more bearish now though, as it is clear there is flipped support to resistance just 3 pips below 1.4000, and the price has been moving down since it made that bearish bounce a few hours ago. I have a bearish bias today.

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm 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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