GBP/USD Forex Signal - 6 February 2019

Yesterday’s signals were not triggered as there was insufficient bullish price action at 1.3000.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2930.

  • 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.

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.

  • 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.

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 the picture was bearish, with the chart dominated by a medium-term bearish trend line which was holding the price down. However, I saw that it may be dangerous to take short trades as the price was not far from 1.3000.

This was a good call as the price managed to keep falling once it broke below the lower trend line and the key support at 1.3000.

The picture remains bearish, but the price is very close to key support at 1.2930 which is likely to be today’s pivotal level. I would take a bearish bias today if the price is below 1.2930 at 9am London time as there is no support for a long way below that, so we could expect the price to fall further.GBPUSDThere is nothing of high importance due today regarding either the GBP or the USD.

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.