GBP/USD Forex Signal - 6 November 2019

Adam Lemon

GBPUSD: Consolidating below 1.2924 

 

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trade Idea

⦁ Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2762. 

⦁ Place 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 Idea

⦁ Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2924.

⦁ Place 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.

GBP/USD Analysis

I wrote yesterday that I was only for a trade from a bearish rejection of the resistance level at 1.2924. This didn’t happen.

The action here is very dull, the price is moving little and aimlessly on low volatility.

Again, the only potential opportunity I see here is a short off the resistance at 1.2924. It is almost certainly going to be a quiet day in the Forex market today, so I highly doubt that the price will be able to reach the nearest support level at 1.2762.

Any opportunities which might arise in the Forex market today are likely to be in other currency pairs.GBPUSDThere is nothing of high importance due today concerning either the GBP or the USD.

About the Author
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

Currency Pairs:
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