GBP/USD Forex Signal: More Bullish

Adam Lemon

GBP/USD: Wide range up day

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

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered before 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 1.3180, 1.3258, or 1.3320.
  • Place the stop loss 1 pip above the recent swing high.
  • Move 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.

Long Trade Ideas

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3115 or 1.3079.
  • Place the stop loss 1 pip below the recent swing low.
  • Move 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.

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 the price had room to rise higher, so if we saw an hourly close during the first half of the London session today above 1.3025, I wanted to take a bullish bias to 1.3079.

This was a good and accurate call. However, I also thought that if the resistance levels at 1.3079 or even 1.3115 were reached later, either level would be very likely to hold. In fact, we got a bullish surprise, driven by news that the U.K. was not going to walk away from final negotiations with the E.U, over a trade deal.

The Pound is looking relatively strong, even with the gains made over recent hours by the U.S. Dollar. The price is now at its highest level in about six weeks. In the absence of any new rumors about trade negotiations, I think the price is likely to trade higher.

I will be happy to take a long trade from a bullish bounce at either 1.3115 or 1.3079 if we get that during the first half of today’s London session.

GBP/USD

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

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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