GBP/USD Forex Signal

09 August 2017 7:25:50 AM

By: DailyForex.com

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

 

Long Trades

· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2950 or 1.2918.

· 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.

 

Short Trades

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3061 or 1.3100.

· 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.

 

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 of this pair has behaved quite similarly to the EUR/USD, and although the support and resistance levels at 1.3061 and 1.2950 have not quite been hit, they have made their presence felt. The Pound is getting a little spike up this morning and seems to be enjoying a little buying. Perhaps long-term buyers are seeing some value here close to 1.2950. I think this level is going to be crucial support and so is more likely to hold, especially as it has 1.2918 providing support just below it, strengthening the area. A break below 1.2918 would be a very bearish sign, signalling the complete ending of the long-term upwards trend.GBPUSD

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.

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. Learn more from Adam in his free lessons at FX Academy.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now