GBP/USD Forex Signal - 29 January 2019

Yesterday’s signals were not triggered, as none of the key levels were reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Short Trade

  • Go short following the next touch of 1.3350.

  • 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.

  • 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.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3138 or 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.

GBP/USD Analysis

I wrote yesterday that looking for long trades here as the London session got underway was likely to be a good idea. I thought that the area at 1.3135 may also be new higher support. This was partially correct as the 1.3135 area did hold as support, and holds still, but the price has not really gone anywhere. This suggests that a deeper retracement below 1.3135 is now much more likely to happen. However, we still have a broadly bullish picture on higher timeframes, so I would still be most interested in any long trade set-ups.

The British Parliament will be voting on a range of potential Brexit strategies this evening, so it might be that the market stays quiet until then and reacts to the results of the votes.

I would take a bullish bias if there were a strongly bullish bounce at 1.3138 or 1.3063 later.GBPUSDThere is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm 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.