GBP/USD Forex Signal

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GBPUSD: More bearish as no deal Brexit becoming more likely

Last Thursday’s signals produced both a long and a short trade and each was profitable.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 5pm London time today only.

Long Trade Ideas

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2105 or 1.2069.

  • 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 Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2169 or 1.2252.

  • 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 last Thursday that despite the long-term bearish trend, I was weakly bullish on the British Pound, as I thought the new hard line taken by the British government on Brexit would make some form of deal more likely to be agreed before 31st October. This was not a great call, as although the price initially rose that day, it turned bearish at 1.2252 and has been falling ever since.

The technical picture is now more bearish. If the resistance level at 1.2169 holds as we get into the London session, the price will probably fall again today by at least a little. That will probably be today’s pivotal point.GBPUSDThere is nothing of high importance due today concerning the GBP or the USD. It is a public holiday in the U.S.A. today.

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.