GBP/USD Forex Signal: Still Bullish

Adam Lemon

The price continued to rise earlier today, trading up through new 5-week high prices, before reacting bearishly as soon as the key resistance level at 1.2709 was hit.

GBP/USD: Level at 1.2709 looks very pivotal

Yesterday’s signals were not triggered, as there was no bearish price action at any of the resistance levels which were reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8 am and 5 pm London time today.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2709 or 1.2842.
  • 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 1.2650, 1.2624, or 1.2575.
  • 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.

Advertisement
Take advantage of record-breaking volatility in the British Pound

Trade GBP/USD now!

GBP/USD Analysis

I wrote yesterday that the nearest resistance level at 1.2575 looked likely to be the day’s key pivotal point and it also looked likely to be broken, so I thought we will see an up day today with a close above 1.2575.

I also thought that we were unlikely to see a retracement to the nearest support level at 1.2509, so long traders should try to enter quickly on a bullish breakout above 1.2575 and be ready to exit quickly on shorter time frames.

This was a great and accurate call, forecasting exactly what happened and mapping out a good route to grab the long pips which were on offer.

The price continued to rise earlier today, trading up through new 5-week high prices, before reacting bearishly as soon as the key resistance level at 1.2709 was hit. I see this level as quite likely to hold over today, although there is no reason to be really bearish yet. Another test of that level might suit scalpers to try to grab some short pips.

I will still look for long trade entries at bullish bounces from 1.2650 or 1.2624.

GBP/USD

There is nothing of high importance scheduled today concerning either the GBP or the USD.

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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.