GBP/USD Forex Signal: Attempts to Break 1.3400 Resistance

Mohammed Shalaby

The broken GBP/USD trend has been successfully re-tested, indicating that the pound is technically heading to the downside; but with violent price fluctuations, this may come with an unexpected strong price movement for the pair.

After reviewing yesterday’s GBP/USD forex signal, we found that the buy or sell orders were not activated.

Short Trade Ideas

The best short ideas today are from the following levels: 1.3441, 1.3500 and 1.3530.

  • Place the stop loss in the short strategy specifically at the 1.3540 level.

  • Collect profits on an average of 30 to 50 pips from each level.

  • Stop loss is moved to the entry point when making 20 pips in profit.

Long Trade Ideas

The best long strategy today is from the following levels: 1.3260 and 1.3184.

  • Place the stop loss at the 1.3174 level.

  • Collect profits on an average of 30 to 50 pips from each level.

  • Stop loss is moved to the entry point when making 20 pips in profit.

Money Management Strategy

Use 1% to 2% of your portfolio value in each trade and distribute this percentage on the stop loss points.

GBP/USD Technical Analysis

The GBP/USD is still holding up against very strong resistance at the 1.3400 level, and is trying to break through. For several weeks, the pair has been trading in a wide range without specifying a clear upward or downward trend, so breaking any of the support or resistance levels will leave behind a strong and violent price movement. Be wary of the GBP/USD's movement after breaking the 1.3400 resistance level.

In addition, the pair breached the lower ascending triangle boundary, which means it has breached the uptrend and successfully retested the broken trend.

The 1.3400 point represents a great importance at the moment so these points should be closely watched today.

The best intraday long targets are 1.3260, 1.3184.

The best intraday short levels are 1.3441, 1.3500, 1.3530.

GBP/USD

GBP/USD Fundamental analysis

Today, December 1, the GBP/USD faces several important economic data affecting the foreign exchange market, including:

  • United Kingdom: the UK Industrial Purchasing Managers' Index (PMI) report will be released.

  • United States: US Federal Reserve Chairman Powell is scheduled to testify before Congress and the Industrial Purchasing Managers Index will be released.

Mohammed Shalaby
Mohammed Shalaby is an experienced Forex trader and has been involved in the Forex, stocks and options markets since 2008.

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