The area of support below the current price starting at $1.2950 remains pivotal, with the price recently trading bullishly at a new multi-month high and looking likely to continue rising.
My previous GBP/USD signal on 13th March produced a losing long trade from $1.2948.
Today’s GBP/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2957, $1.2951, or $1.2895.
- 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 run.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.3019 or $1.3060.
- 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 run.
Top Forex Brokers
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 technical picture was bullish as long as the price remained above the support level at $1.2948. This was a good call at least insofar as the level was pivotal and once it broke down, the price continued to produce a bearish chop until this new week, when it began advancing decisively.
Interestingly, the area around $1.2950 again looks pivotal, with a zone of support sitting just above this half number and acting to hold up the price.
We see short-term bearish momentum pushing the price into this area of support, but I think the supportive area will hold, at least until the FOMC meeting later which might produce volatility which disrespects technical levels.
So, I think the best opportunity today would be a long scalp trade from a bullish bounce from the area between $1.2957 and $1.2950.
There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a Federal Reserve Meeting at 6pm London time.
Ready to trade our daily Forex signals? Here is our list of the top 100 Forex brokers list worth checking out.