GBP/USD Forex Signal - 8 May 2019

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Yesterday’s signals produced a long trade entry at the supportive candlestick on the hourly chart which rejected the support level at 1.3041. The price action looks extremely flat so it would probably be wise to exit from this trade now.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3041 or 1.2963.
  • Put 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 1.3081.
  • Put 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.

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GBP/USD Analysis

I wrote yesterday that the British Pound is relatively strong this week, and the price was near multi-day highs, so it looked quite likely that we would see still higher prices.

I was wrong, as the price actually pulled back further, although it looks (for the time being at least) as if the second support level at 1.3041 has held.

The price is currently quite becalmed within a narrow band between support and resistance, with bulls and bears very evenly matched.

It will probably be wise to stand aside from trading this pair today, until we get more definite directional movement. There will probably be better opportunities elsewhere.

There is no long-term trend here.

gbpusd

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.