GBP/USD Forex Signal

|

GBPUSD: Evenly balanced between bulls and bears

Yesterday’s signals were not triggered, as there was no bearish price action when 1.2864 and 1.2888 were hit.

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, 1.2799, 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 1.2912, 1.2925, or 1.2943.

⦁ 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

GBP/USD Analysis

I wrote yesterday that the level at 1.2822 was likely to be quite strong, so I thought it would hold despite the daily chart suggesting a downwards movement. 

The price in fact rose bullishly, so I was right about that level holding, although it was never tested.

The technical picture is now more evenly balanced between bulls and bears – the price has been holding in a range between about 1.3000 and 1.2750 for a few weeks now. The Pound should remain relatively strong over the next couple of weeks provided opinion polls continue to forecast a strong victory in the British general election of 12th December for the governing Conservative Party.

I have no directional bias today although I generally prefer long trades from bullish bounces at key support levels.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