GBP/USD Forex Signal - 27 June 2019

Adam Lemon

GBPUSD: Pound neutral against resurgent Dollar

Yesterday’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 may only be taken between 8am and 5pm London time today.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2638, 1.2610, or 1.2606.

  • 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.

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2709.

  • Put 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.

  • Remove 50% of the position as profit when the price reaches 20 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.

GBP/USD Analysis

I wrote yesterday that as the USD had strengthened, and the Pound had been one of the weaker currencies, so a short trade or short bias here seemed to make sense today in the current market environment. However, I also thought that it may well be that the price bottoms out at or close to 1.2639 as that level looks to be very supportive. I took no directional bias and anticipated movement might be choppy overall.

This was a good forecast as the price just went sideways below the resistance at 1.2709, adjusted now to 1.2707. This pair is quite aimless with little trend on any time frame, although the short to medium-term action looks a little bearish. The Pound is prone to weakness, so if the USD begins to recover strongly later, we are likely to see meaningful downwards movement today and a test of the nearest support level at 1.2639. Much will depend upon whether there is any surprise in the U.S. GDP data which will be released later.

I take no directional bias on this currency pair and I expect that there will be better trading opportunities in other currency pairs today.GBPUSDThere is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of Final GDP data at 1:30pm London time.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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