GBP/USD Forex Signal

GBPUSD flirts with long-term lows as Brexit deadlock remains

Yesterday’s signals were not triggered as the resistance level at 1.2970 was never quite reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trade

  • Go long at 1.2828.

  • 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 Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2924 or 1.2970.

  • 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.

Great trade opportunities are waiting. Don't miss it!
TRADE NOW

GBP/USD Analysis

I wrote yesterday that the price looked likely to fall further, but there was key U.K. economic data due early in the London session which might produce a surprising mood. If the price rejected 1.2970 and acted bearishly in the hour following the U.K. data release, I would take a bearish bias on this pair.

The price has a long way it may fall before finding any key support levels. Below 1.2900, we would be in the territory of a long-term bearish trend.

This was a good call as the price fell further over the past day, although the level at 1.2970 was never reached. The picture now looks more bearish as the long-term low at about 1.2900 is in danger, and the price has printed new lower resistance at 1.2924. If there is a bearish rejection following a retest of this level on above-average volatility I will take a bearish bias today.

The Pound is suffering as there is no sign of any real progress in the Parliamentary deadlock over Brexit – still.GBPUSDThere is nothing important due today concerning the GBP. Regarding the USD, there will be a release of Retail Sales data at 1:30pm 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.