GBP/USD Forex Signal - 8 August 2019

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GBPUSD: Still supported at 1.2092

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 before 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 Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2210 or 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 higher time frames were looking more bearish, but the support at 1.2092 continued to hold firm.

I wanted to keep looking towards the short side, as I saw a break below 1.2092 as opening the door to a sharp fall to the major psychological level and huge round number at 1.2000.

I was ready to take a bearish bias if the price was below 1.2085 and 9am or 10am London time. It wasn’t so there was no signal.

This was an OK analysis, the only thing I have to add today after looking at the chart for a while is a new resistance level at 1.2210. The price is still being supported from 1.2092, but still looks quite heavy and likely to eventually fall below that level and to drop more, to the 1.2000 area.

I do not think any key levels will be broken today it would be more likely to happen tomorrow.

I would take a bearish bias today if we get either a retracement to 1.2210 and a strong bearish reversal there, or if the price is below 1.2085 at 9am or 10am London time.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.
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