My previous GBP/USD signal on 2nd May was not triggered, as none of the key levels were reached that day.
Today’s GBP/USD Signals
- Risk 0.75%.
- Trades must be taken 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 $1.2478, $1.2449, or $1.2376.
- 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 $1.2529 or $1.2647.
- 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 forecast for the GBP/USD currency pair almost one week ago,
there could be scope for a long trade above $1.2578. However, the level was not reached that day.
The technical picture has not changed a lot over the past week. We are still seeing a consolidation although its at a slightly higher base so is slightly more bullish. The price seems to be ranging between an area of support at $1.2450 and the $1.2625 area. The upper boundary of this region is less obvious that the lower one, suggesting that the line of least resistance is upwards, which supports the bullish case.
If we see a bullish reversal at either of the nearest support levels during the first half of the London session, that could be a nice swing trade long. Either level could work well.
There is nothing of high importance scheduled today concerning either the GBP or the USD.
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