GBP/USD Forex Signal - 7 May 2019

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Yesterday’s signals were not triggered, as the bullish price action took place a few pips below the support level identified at 1.3093.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3081, 1.3041, or 1.2963.
  • Place 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.

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3250.
  • Place 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.

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.

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GBP/USD Analysis

I wrote yesterday that the environment now was risk-off which would tend to push this pair down, but that could easily turn around on good trade news about the threatened tariffs, so a bullish bounce at any nearby support level could still be a good long trade entry.This was a good call as such a bullish bounce was made a few pips below the nearest support level which I identified.

The British Pound is relatively strong this week, and the price is near multi-day highs, so it looks quite likely that we will see still higher prices today.

A break above last week’s high would be a bullish sign.

GBP/USD Signal

There is nothing important due today concerning 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.