My previous GBP/USD signal on 6th March was not triggered, as there was no bullish price action when the support level at $1.2877 was first reached.
Today’s GBP/USD Signals
Risk 0.75%.
Trades must be entered prior to 5pm London time today only.
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Long Trade Ideas
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2948, $1.2870, or $1.2853.
- 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
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.3000, $1.3019, or $1.3060.
- 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 GBP/USD forecast on Thursday last week that the bullish momentum might not last long, but it was worth trying to take advantage of it. I had my eye on a long scalp from the nearest support level at $1.2877.
The technical picture remains bullish, despite the days-long consolidation above $1.2870 which was a bullish consolidation. The price has made a bullish breakout and is now finding support at the new higher support level at $1.2948. If the price holds up above this level, we have a bullish scenario, so a long trade from this level could be a good idea today.
The price is close to the bullish blue sky of a 4-month high. However, bulls might want to beware of the fact that we have resistance overhead completely confluent with the big round number at $1.3000. This could halt the advance, at least for a while.
The basic major factor driving markets right now, including the Forex market, is the trade war between the USA on one hand and Canada, Mexico, and China on the other. The USA is also implementing tariffs which will not be country-specific, on certain metals. This issue is helping to weaken the US Dollar, although it has good days here and there. This is the major factor pushing the price of this currency pair higher, so if there are any tariff deals or climbdowns, we could expect the bullishness to end here quickly, at least for a while.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of PPI and Unemployment Claims data at 12:30pm London time.
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