GBP/USD Forex Signal: Strong support at 1.2975 / 1.3000

Adam Lemon

GBP/USD: No long-term trend

Yesterday’s signals were not triggered as the bearish price action took place above 1.3055.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm London time today only.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3065, 1.3115, or 1.3180.
  • 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 1.2993 or 1.2975.
  • 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 I thought the best approach here would be to scalp off 1.3055 or 1.2993 and be ready to take profit quickly.

This was a pretty good call as the price went sideways, and although the high was above 1.3055, the low was only 1 or 2 pips off 1.2993.

The technical picture is becoming a little more bullish as the price quietly breaks out of the old bearish channel as the supportive area continues to hold.

If the price cannot break below 1.2993 quite soon, it is likely to make another trip up to at least 1.3065.

It may be that the Forex market goes sideways in major currency pairs until the result of next Tuesday’s presidential election becomes known and begins to move the value of the U.S. Dollar.

I am be prepared to take a cautious long trade from a bullish bounce between 1.2993 and 1.2975.GBPUSDThere is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of Durable Goods Orders at 12:30pm London time followed by Consumer Confidence data at 2pm.

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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