GBP/USD Forex Signal

22 November 2017 8:05:01 AM

Yesterday’s signals produced a long trade from the bullish inside candle rejecting the support level at 1.3222, and the trade would still be open as it has not quite made the minimum 25 pips profit yet.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken between 8am and 5pm London time today only.

Protect any open trade before 6:30pm.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3222 or 1.3132.

  • 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 Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch 1.3344.

  • 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

There are major releases ahead today for both sides of this pair, and as traders are cutting their positions ahead of the releases, volatility has become very low and trading tight. The events yesterday had insignificant impact upon this pair, but today’s releases are likely to, and will probably blast the price past the obvious technical levels, and it could be in any direction. The best that can be said is that “accidents happen along the line of least resistance”, so if you are going to take a gamble, a long trade is likely to have greater total potential than a short trade.

Technically, this pair is in a long-term bullish trend, and keeps finding key support above the psychologically crucial 1.3000 level. Yesterday it rose from the support level at 1.3222. The price is contained within a medium-term bullish channel. If the price is driven up strongly later and is firmly above 1.3344 at the New York close, that will be a strongly bullish sign.

GBPUSD

Concerning the GBP, the British Government will be releasing its Autumn Forecast at 12:30pm London time. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims at 1:30pm, followed by Crude Oil Inventories at 5pm, and FOMC Meeting Minutes at 7pm.

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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