GBP/USD Forex Signal - 14 November 2019

Adam Lemon

GBPUSD: Narrowing triangle pushing breakout scenario 

 

Yesterday’s signals were not triggered, as the price never quite hit the support level at 1.2822.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trade Ideas

⦁ Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2822, 1.2800, or 1.2767. 

⦁ 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

⦁ Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2870 or 1.2924.

⦁ Put 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.

GBP/USD Analysis

I wrote yesterday that it looked as if bulls and bears were very likely to fight it out at what I saw as a pivotal point at 1.2870. I was correct about the technical levels, but the battle was at support near 1.2822 and not the resistance at 1.2870, so I was wrong on that point.

The price chart below shows that the descending trend line which I highlighted yesterday is making its presence felt quite strongly and is continuing to push the price down. However, we also have a short-term ascending triangle below which is creating a consolidating triangle formation.

Respecting the triangle formation, I see a breakout above 1.2870 as a bullish sign, and a breakdown below 1.2822 as a bearish sign. The breakout may well take place when the British Retail Sales data is released,GBPUSDRegarding the GBP, there will be a release of Retail Sales data at 9:30am London time. Concerning the USD, there will be a release of PPI data at 1:30pm, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm.

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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