GBP/USD Forex Signal - 22 August 2019

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GBPUSD: Messy and unpredictable on Brexit renegotiation attempt

Yesterday’s signals were not triggered, as none of the key levels were yet reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am and 5pm London time today.

Long Trade Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2105 or 1.2065.
  • 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 Idea

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2210.
  • 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.

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GBP/USD Analysis

I wrote yesterday that the price action still looked confused and quite evenly caught between bulls and bears. This was why I took no directional bias for the day on this currency pair.

The action is still very messy, and it looks like trading this on any kind of short time frame is going to be very difficult in this market condition.

The support at 1.2105 may be an interesting level. If we get a firm bullish bounce there, a long trade back up to the area of the recent highs at about 1.2175 becomes a possibility.

Beyond that, it is probably a good idea to avoid trading this pair right now as the price looks very unpredictable.

gbpusd

There is nothing of high importance due today concerning either the GBP or the USD.

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.
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