GBP/USD Forex Signal: Pivotal point at 1.2915

Adam Lemon

GBP/USD: Pound is not advancing as a leader

Yesterday’s signals were not triggered, as the support level identified at 1.2906 was not reached until after the end of yesterday’s London session.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered prior to 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 1.2915 or 1.3023.
  • Put 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 1.2785.
  • Put 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 we could expect a bearish pullback without invalidating the medium-term bullish picture if the price did not get established below the nearest support level at 1.2906.

I was happy to take another long trade there.

The level held and was not reached throughout the London session, but we saw a breakdown below it later as the Trump administration announced it would not be pursuing a potential agreement with Congress over a further economic stimulus package before the 3rd November Presidential election. This boosted safe havens such as the U.S. Dollar, although we have seen a recovery from that during recent hours.

It is also notable that the big round number at 1.3000 produced strong topping action, which suggests that the price will struggle to get established above that level in the near future.

The Pound is not relatively strong, so the best that can be said is that we have what looks to be a pivotal point at 1.2915 and a medium-term bullish trend. This means that if we get two consecutive hourly closes above 1.2915, ideally early in today’s London session, I will be happy to take a bullish bias.

We will be getting U.S. data in the form of FOMC minutes which could make a strong impact upon the price of the USD in any currency pair if it contains any surprises, so be aware of that timing.

GBP/USD

There is nothing of high importance scheduled today concerning the GBP. Regarding the USD, there will be a release of FOMC meeting minutes at 7 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

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.