My previous GBP/USD signal on 27th June produced a short trade from the bearish rejection of the resistance level which I had identified at $1.2748, but this only gave about 20 pips of profit so would have been a loss.
Today’s GBP/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Long Trade Idea
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2640 or $1.2597.
- Place the stop loss 1 pip below the local 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 ride.
Short Trade Ideas
- Short entry Go following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.2722, $1.2762, or $1.2804.
- Place the stop loss 1 pip above the local 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 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.
GBP/USD Analysis
I wrote in my previous forecast for the GBP/USD currency pair that the price was consolidating within quite a narrow range of one big figure, with support near $1.27, resistance near $1.28, and a key level right in the middle confluent with $1.2750. It seemed likely that today the price would continue to move little, meaning that provided the price remains within this range, there could be opportunities for cautious scalping trades from rejections of any of these levels.
This was a good call, as there was a short scalp available during the early part of the London session from the bearish rejection of the big quarter-number at $1.2750.
The price is continuing to do not very much and will likely show little directional movement today, due to it being Monday which is typically a quiet day in the Forex market, and as the US Dollar is in a technical consolidation, plus the Pound has not been moving much over recent days.
However, the price is near a resistance level at $1.2722, and with its current price action, does not look like it is about to reverse.
I think the best strategy for today will be to look for a short scalp from $1.2722 if that level is reached again today.
Concerning the USD, there will be a release of US ISM Manufacturing PMI data at 3pm London time. There is nothing of high importance due today regarding the GBP.
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