GBP/USD Forex Signal - 6 August 2019

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GBPUSD: Support at 1.2092 still holding

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 entered prior to 5pm London time today.

Long Trade Ideas

  • Long entry following a bullish price action reversal upon the next touch of 1.2092 or 1.2000.

  • 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 1.2280.

  • 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 key support level was at 1.2092, and this had continued to hold, suggesting that the price was beginning to bottom out. Nevertheless, there was still a good reason to take a bearish bias if the price was at or below 1.2082 at 9am or 10am London time. It wasn’t, and the price continued to consolidate above the support at 1.2092, so this was a reasonably good forecast and enough to prevent anyone getting into trouble.

The overall environment is likely to be bearish for the Pound going forward, but for now, it looks like the market is taking a break from focusing here, but it will come back into the spotlight. For now though, it looks like the support level at 1.2092 is going to hold over the day, but I don’t see the price as likely to rise much, so there is probably not going to be much opportunity in this currency pair today except maybe a small long scalp off 1.2092.GBPUSDThere 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.