GBP/USD Forex Signal

11 October 2017 7:27:51 AM

Yesterday’s signals were not triggered, as there was no bearish price action at 1.3185.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Open trades should be protected by 6:30pm.

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3178.

  • 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.

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3296.

  • 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.

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 U.S. Dollar weakened yesterday, and although the Euro was the primary beneficiary of this, the British Pound also strengthened, showing some significant bullish technical developments. The bearish trend line is broken, and new a new support level has been established at 1.3178. There is a confluence here, so it might act as strong support as a launchpad for a further rise today, although this is not very likely to happen until the FOMC Meeting Minutes release due later.

The nearest resistance at 1.3296 is likely to be strong, as it is confluent with the round number at 1.3000.GBPUSD

There is nothing significant due today concerning the GBP. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm 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.

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