GBP/USD Forex Signal - 9 August 2017

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 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.