GBP/USD Forex Signal - 13 September 2017

13 September 2017 7:27:00 AM

Yesterday’s signals was not triggered, as there was no bearish price action at 1.3240.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may be entered before 5pm London time today only.

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3240.
  • 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 very strong bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3344 or 1.3372.
  • Put 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

This pair is bullish on every time frame, and it is thanks to the standout performance of the British Pound over recent days as the best performing major global currency. Bulls received yet another boost yesterday as British inflation data came in higher than expected, although the odds that this will make monetary policy notably tighter significantly faster are low. Nevertheless, the pair has just made a new 1-year high, and is trading above some prices that were made on the day of the Brexit vote in June 2016. This is partly due to the long-term weakness of the U.S. Dollar, but the Pound has also been getting the upper hand over the Euro during recent weeks too.

Technically, the rise looks solid, and the break above the 1.3250 area encouraging to bulls. However, all the way up to 1.3500, there are a few historical key swing highs that are likely to force at least a lull to the rise. I maintain a strongly bullish bias.GBPUSD

Regarding the GBP, there will be a release of U.K. Average Earnings Index data at 9:30am London time. Regarding the USD, there will be a release of PPI data at 1:30pm, followed by Crude Oil Inventories at 3:30pm.

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