GBP/USD Forex Signal: Bearish Trend Line – DailyForex.com
GBP/USD: Price seems unwilling to get established above 1.3000
Yesterday’s signals were not triggered, as there was no bearish price action when the resistance levels identified at 1.2975 and 1.2993 were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5 pm London time today only.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2975, 1.2993, or 1.3079.
- 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 run.
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.
I wrote yesterday that the 1.3000 level stood out as a potentially pivotal point, maybe even for a short trade entry later today. If the price could get established above 1.3000, I thought that would be a moderately bullish sign.
This was not a good call as the price broke up above 1.3000 but then came right back down after a few hours. We are still seeing ranging behavior by the price here with not much respect shown to what seem to be key support and resistance levels.
The dominant feature shown in the price chart below is ranging price in waves held down by a dominant bearish trend line. It seems the Pound can fall if the prospect of a U.K. / E.U. trade deal fades away completely.
Looking below, we see that a double bottom has printed at 1.2863. This area may be supportive the next time it is reached.
I again see the very best opportunity which might set up later today as a short trade from a bearish reversal at 1.3079. Otherwise, day traders may enjoy the relatively high volatility here and just try to trade swings on short time frames as the price ranges.
There is nothing of high importance due today concerning either the USD or the GBP.
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