My previous GBP/USD signal on 6th June was not triggered, as none of the key support or resistance levels were reached that day.
Today’s GBP/USD Signals
- Risk 0.75%.
- Trades must be taken before 5pm London time Wednesday.
Long Trade Ideas
- Long entry following a bullish price action reversal on the 1H1 timeframe immediately upon the next touch of $1.2674, $1.2603, or $1.2592.
- 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 $1.2716, $1.2738, or $1.2823.
- 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 on 6th June that the price was near a long-term high so I was comfortable entering a new long trade following a bullish bounce later off $1.2754, or a breakout beyond $1.2823 during today’s London session. Neither set up so this was safe if useless.
The technical picture has become somewhat more bearish over the past few weeks, as the US Dollar has made a recovery and started moving more firmly within a bullish long-term trend. However, the US Dollar has been declining in recent hours, giving the price a chance to rise. There have been some reasons for pessimism over all Eurozone-adjacent currencies due to a weaker Euro on the prospect of the RN party taking power in France. However, markets seem to have shrugged off these concerns today to push the price higher.
Technically, the advance beyond $1.2674 is the key factor, and along trade following another bullish bounce here could be a good trade entry signal today. The resistant area between $1.2716 and $1.2738 is also likely to be a pivotal area, so there might be a short trade opportunity there later.
If the price can get established above $1.2738 later today, that will be a bullish sign.
There is nothing of high importance scheduled today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
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