GBP/USD Forex Signal - 5 June 2019

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Yesterday’s signal was not triggered as the bullish price action took place a little way below 1.2656.

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 yesterday that the GBP was not strong, it was actually weak, it was only USD weakness that has moved the price up here at all. As such I saw little opportunity here and wanted to again stand aside from trading this currency pair.

The price rose over the day and the technical picture is a little more bullish. Zooming out to a daily price chart shows we have a bullish V rejecting 1.2600 and the advance is strengthening, so I finally see some genuine strength in the British Pound now.

I think higher prices are somewhat more likely over the course of the day, but as we are in a wide area of recent choppiness, price movements will still probably be relatively unpredictable making swing trading this pair a little dangerous right now.

gbpusd

There is nothing important due today concerning the GBP. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm 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.