GBP/USD Forex Signal: Bullish Above 1.2714

Adam Lemon

The support level at 1.2650 still looks attractive and may well get hit today, so I will be happy to take a bullish bias if we see a firm bounce off that price level.

GBP/USD: Looking to breakout beyond 1.2750

Yesterday’s signals produced an excellent, profitable long trade from the bullish inside candlestick which rejected the support level identified at 1.2650.

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 1.2842.
  • 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 1.2714, 1.2650, or 1.2624.
  • 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.

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GBP/USD Analysis

I wrote yesterday the most likely scenario would be ranging price action with high volatility, which was likely to make this pair hard to trade.

However, I did suggest scalpers looked for longs if the price reached 1.2650 and started to make a bullish bounce, which it did.

I should have been more optimistic, but I saw the Pound as significantly weaker than the Euro. Yet this proved not to be the case over the day.

The price now is just starting to break below the highest support level at 1.2714, after failing to rise above the major psychological quarter-number at 1.2750. This suggests that we are going to see a deeper retracement now, which is natural after a few days of the USD being sold.

The support level at 1.2650 still looks attractive and may well get hit today, so I will be happy to take a bullish bias if we see a firm bounce off that price level.

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

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