GBP/USD Forex Signal

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Last Thursday’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 must be entered 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 1.2642.
  • 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.
  • 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

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2828.
  • 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.
  • Take off 50% of the position as profit when the price reaches 20 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 last Thursday that the price here still looked aimless, the real action was elsewhere, and the chart remained quite choppy with only a support level nearby. The outlook for this pair still looked unpredictable. I think this was a good call, as the action has continued to be relatively choppy.

We may get some more directional clarity today, as in a thin news environment, there is major British economic data (including GDP numbers) due today. Yet for now, I would continue to stand aside from entering any trades in this pair. The price is quite far from either support or resistance.

gbpusd

There is nothing important due today concerning the USD. Regarding the GBP, there will be releases of GDP and Manufacturing Production data at 9:30am 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.