GBP/USD Forex Signal

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GBPUSD: More bullish on new opinion poll forecasting strong government victory

 

Yesterday’s signals were not triggered, as there was no bearish price action at 1.2912, 1.2925, or 1.2943.

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 on the H1 time frame immediately upon the next touch of 1.2923, 1.2905, or 1.2893. 

⦁ 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 Idea

⦁ Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3041.

⦁ 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 yesterday that I was generally looking for short trades near 1.3000 and long trades near 1.2750 as the price remained ranging within this area, so the closer to 1.2750 we got a bullish bounce at a support level, the better.

This was at least enough to keep out of trouble, but the picture become more bullish yesterday with the release of the most detailed opinion poll yet covering the current British general election campaign. It showed the government on course to win with a strong majority, which would provide more certainty over policy and certainly deliver some form of Brexit at the end of January 2020.

Despite the more bullish picture, and the clearing out of all resistance levels below 1.3041, I think the range we are seeing between about 1.2750 and 1.3000 will continue to hold. We may have already seen the recent high put in at about 1.2960.

I would be willing to take a short bias today if the price can make a bearish reversal at or very close to 1.3000, or at the key resistance level identified at 1.3041. GBPUSD There is nothing of high importance due today concerning the GBP or the USD. It is a public holiday today in the U.S.A. 

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