GBP/USD Forex Signal - 8 January 2019

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

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2918.

  • 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.

  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2697 or 1.2618.

  • 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.

  • 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

I wrote yesterday that if the price could get established above 1.2750 that would be a bullish sign. This was a good call as it happened, and the price rose a little over the day. This pair still looks quite bullish, in fact now it looks more bullish than the EUR/USD currency pair. The bullishness is surprising considering the British Parliament will be holding a vote on the Brexit deal next week which the Government still seems likely to lose, but it may be the market is seeing a greater chance of the deal passing. I would take a bullish bias if the price is above 1.2800 at 9am London time.GBPUSDThere is nothing of high importance due today concerning either the GBP or the USD.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.