My previous GBP/USD signal on 11th March was not triggered, as there was no bullish price action when support was reached.
Today’s GBP/USD Signals
- Risk 0.75%.
- Trades must be taken before 5pm London time today only.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2727 or $1.2670.
- 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 $1.2759 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.
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GBP/USD Analysis
I wrote in my previous forecast for the GBP/USD currency pair last Monday that the price action looked bullish and the support at $1.2839 looked strong, so I was seeking a long trade from a bullish bounce off this level.
However, my analysis was not effective, as the price headed down to $1.2839 but kept going lower without producing any attractive long trade entry signals.
The price has taken more of a bearish turn over the past few days, with the US Dollar getting stronger at the expense of almost all other currencies, including the British Pound.
The flow on longer-term charts is certainly bearish, but what is currently interesting is the way the price won’t get below the support level at $1.2727. This level has been holding for not much less than 48 hours, so there seems to be some buying there.
I think this support at $1.2727 is likely to be today’s pivotal point. A long trade from another bullish bounce there should be watched carefully but could be a good trade. A bearish breakdown below $1.2727 would seem to have more potential though, as the price would then have room to fall all the way to $1.2670. So I will take a new short trade if we get two consecutive lower hourly closes below $1.2727, especially if this happens before Noon London time today.
There is nothing of high importance scheduled today concerning either the GBP or the USD.
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