GBP/USD Forex Signal

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GBPUSD: Bullish above 1.2897

Last Thursday’s signals were not triggered, as there was no bearish price action at 1.2870.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm London time today.

Long Trade Ideas

⦁ Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2897 or 1.2862. 

⦁ 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

⦁ Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3041 or 1.3081.

⦁ 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 respecting the triangle formation, I saw a breakout above 1.2870 as a bullish sign, and a breakdown below 1.2822 as a bearish sign. This was a good call, as we got a bullish breakout above 1.2870 which has led to a rise of about another 50 pips since.

The technical picture now looks more bullish above the 1.2900 area, although the region just below the big psychological level at 1.3000 has been long-term support, so the price may well make only a moderate rise today even if it does go up.

The British Pound is strong as opinion polling continues to strengthen in favour of the governing British Conservative Party which appears set to win a convincing election victory and finally deliver Brexit by the end of January. Meanwhile, the U.S. Dollar is weak, so we have a good pairing here.

I take a bullish bias above 1.2900 until about 1.2975 today.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.
Learn more from Adam in his free lessons at FX Academy