GBP/USD Forex Signal - 17 January 2017

GBP/USD Signal Update

Yesterday’s signals were not triggered as neither of the key levels were not reached during the session.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm London time today only.

 

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1900.

  • 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.

 

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2133 or 1.2233.

  • 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.

 

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

The price has recovered strongly from the psychologically key 1.2000 area where it opened this week, and during the late Asian session the key resistance area of 1.2133 was hit. Usually, such levels are at least touched again during the London session, but the fact there is an important news release due for the Pound during that time makes the very short-term unpredictable.

Note that the price can be seen in the chart below to be contained within a clear bearish channel.GBPUSD

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

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.