GBP/USD Forex Signal - 4 June 2019
Yesterday’s signals were not triggered, as the bullish price action took place a little way below the support level identified at 1.2621.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today.
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2656.
- Put 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.
- 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.
I wrote yesterday that technically in terms of support and resistance the picture here really was a mess, with nothing except potential support at 1.2621. The real story in the market remained risk-off sentiment and USD weakness and this is what has caused the price to rise over recent hours rather than any true strength in the Pound. For this reason, I was ready to stand aide from trading this pair.
This was a fairly good call, although the price did end up rising a little from an area just below the support level, I identified at 1.2621. It was clear that there was little action here in this pair. Apart from moving up the support level, there is no real change to the picture – the GBP is not strong, it is actually weak, it is only USD weakness that has moved the price up here at all. As such I see little opportunity here today and would again stand aside from trading this currency pair.
There is nothing important due today concerning the GBP. Regarding the USD, the Chair of the Federal Reserve will be giving a speech at 2:55pm London time.
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