GBP/USD Forex Signal: Still Bullish Above 1.2948

Adam Lemon

Yet 1.3000 could be a strong obstacle                  

Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at 1.2977 was reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 5pm London time today.

Short Trade Idea

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3086.
  • 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.
  • 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.

Long Trade Ideas

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2948, 1.2900, or 1.2848.
  • 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.
  • 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.

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 the price looked set to advance, so I thought that the best approach would be to scalp bullish breakouts in the long direction. This was a good call as the price has moved higher over the past 24 hours, but not by much.

Interestingly, despite the advance in the USD we have seen in recent hours, the Pound is holding up well, in fact even better than the Euro is, which is a bullish sign for the Pound.

The technical position is interesting as despite this bullishness, we see the price being held over recent hours quite precisely by the important psychological round number at 1.3000. It may be hard for bulls to break this level, but if it does break, the price could advance quite quickly as high as 1.3086 where the next resistance level is located.

I will take a bullish bias to 1.3086 if we get an hourly close soon above 1.3000 with the close of that hourly candle sitting very near the high of that candle’s range.

GBP/USD

Regarding the USD, there will be a release of Advance GDP data at 1:30pm London time. There is nothing of high importance due concerning the GBP.

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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