My previous GBP/USD signal on 28th November was not triggered, as unfortunately the high and low of that day were just a few pips beyond the nearest support and resistance levels which I had identified.
Today’s GBP/USD Signals
- Risk 0.75%.
- Trades must be taken prior to 5pm London time today.
Long Trade Ideas
- Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 timeframe immediately upon the next touch of $1.2619, $1.2609, or $1.2575.
- 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 1H1 time frame H1H1H1 timeframe immediately upon the next touch of $1.2785 or $1.2813.
- 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 last Thursday that the best opportunity looked likely to be from a short-term long trade from a bullish bounce at the support at $1.2650. This was a relatively good call although unfortunately the low was just a few pips below that level so probably not actionable.
The technical picture now is more confusing, the price is swinging up and down without any clear direction. The US Dollar is in a long-term bullish trend, but it may have run out of steam. Today, so far, we are seeing the US Dollar falling gently, which is producing a modest rise in the price here.
I do not think this currency pair is one of the better ones to trade today, but if I have to pick the strongest potential opportunity that might come up here, I see a short trade from a bearish reversal at $1.2719 as likely to be it.
There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of JOLTS Job Openings data at 3pm London time.
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