GBP/USD Forex Signal - 31 January 2019
Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.3063.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3063.
- 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.
- 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.
I wrote yesterday that Brexit will continue to dominate this pair and there will continue to be high volatility with big ranges. The focus in recent hours shifted away from the Pound towards the U.S. Dollar which took a substantial hit after yesterday’s FOMC release, sending most currencies higher against it, including the Pound. So, we see the supportive area below holding, and at the time of writing, the resistance level at 1.3137 also appears to be breaking. These are both bullish signs, but it is worth noting the Pound looks much less bullish against the USD than other currencies such as the EUR and the NZD, so the Pound is relatively weak as the U.K. and the E.U. are back in a conflicted negotiation that must be resolved by 29th March. Until that changes, I would be very carefully about taking any long trades for significant profits. If the price can remain above 1.3137 today, it would be a mildly bullish sign.
There is nothing of high importance due today regarding either the GBP or the USD.
- Currency Pairs