SIGNAL FOREX

GBP/USD Forex Signal: Bearish Triangle Breakdown – DailyForex.com


The price is now falling with firm bearish momentum and the U.S. dollar is showing strength everywhere, as new 6-week low prices are reached.

Last Monday’s GBP/USD signals produced a profitable long trade from the bullish inside candlestick breakout which rejected the support level identified at 1.3823.

Today’s GBP/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 5pm London time today only.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3759 or 1.3802.

  • Put the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3653 or 1.3617.

  • Put the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the price reaches 20 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.

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GBP/USD Analysis

I wrote last Monday that the range was likely to continue holding between 1.3800 and 1.4000.

I thought that the key development to watch for here would be a sustained break below the lower trend line which was sitting at about 1.3823.

This was a good call, as the range did hold on Monday as I predicted. Additionally, yesterday saw us finally get the sustained breakdown below the lower trend line of the wide consolidating triangle formation, which has then produced over recent hours a sustained and strong downwards move.

The price is now falling with firm bearish momentum and the U.S. dollar is showing strength everywhere, as new 6-week low prices are reached.

It is worth noting that although almost all currencies are falling against the dollar, the pound is relatively weak, so the price is falling especially strongly here.

It is looking likely that the price will continue to fall to at least 1.3653 today and it may even reach as low as 1.3617.

I would not want to take any long trade today, but it may be that most of this downward push has already played out. There may be opportunities to trade short-term bullish pullbacks short as intraday trading today.

Regarding the GBP, there will be a release of Flash Manufacturing and Services PMI data at 9:30am London time. Concerning the USD, there will be a release of Flash Manufacturing PMI data at 1:45pm followed 15 minutes later by the Chair of the Federal Reserve testifying before the Senate Banking Committee.

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