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GBP/USD Forex Signal: Bulls Pushing to Overcome $1.2823

My previous GBP/USD signal on 2nd July was not triggered, as there was no bearish price action when the resistance level was first reached that day.

Today’s GBP/USD Signals

  • Risk 0.75%.
  • Trades must be taken prior 5pm London time Wednesday.

GBP/USD Signal Today - 09/07: Bulls Eye $1.2823 (Chart)

Long Trade Ideas

  • Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2777, $1.2769, or $1.2736.
  • 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 following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.2881 or $1.2905.
  • 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.

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    GBP/USD Analysis

    I wrote in my previous GBP/USD forecast that the technical picture looked bearish below $1.2658. The key neckline which bears needed to break was the support level’s confluent round number at $1.2600.

    This was not a great call although it was not damaging, as the price rose over the day rather than breaking down. The levels I mentioned remained easily intact.

    The technical picture has become much more bullish, with the price now threatening to make a bullish breakout to a new 3-month high.

    The British Pound is one of the stronger major currencies and has enjoyed a bullish long-term trend for quite a while now. The US Dollar fell quite strongly last week, and still looks weak, but is near support and so bears may struggle to push it lower, although sentiment on inflation and rate cuts certainly supports a weaker US Dollar now.

    Bulls have pushed at the former resistance level at $1.2823 enough to invalidate it. The next resistance level is not until $1.2881, so the price has room to rise today.

    There are several reasons to expect higher prices today, so swing traders should look to buy any bullish bounce at the nearest support level of $1.2777, although the round number at $1.2800 could also work as a potentially supportive level.

    There is nothing of high importance scheduled today concerning the GBP. Regarding the USD, the Chair of the Federal Reserve will be testifying before the Senate at 3pm London time.

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    Adam Lemon
    About 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.

     

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