SIGNAL FOREX

GBP/USD Forex Signal: Looks Bearish – DailyForex.com


Markets have been hit by risk-off sentiment which has boosted the Dollar at the expense of the Pound, which currently seems to be the weakest major currency. 

GBP/USD: Pivotal points at 1.2773

Yesterday’s signals were not triggered as there was no bullish price action when the support level at 1.2852 was first reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken between 8 am and 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 1.2773, 1.2824, or 1.2871.
  • Place the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is 25 pips in profit.
  • Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.

Long Trade Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2650 or 1.2624.
  • Place the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is 25 pips in profit.
  • Take off 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 yesterday that the technical picture had become quite simple – a wide, ranging consolidation below the big round number at 1.3000, which no clear key support level above 1.2852.

As the U.S. Dollar was strengthening, I thought that some kind of downwards move seemed likely.

I was completely wrong about the prevailing range holding, but I was right about the day’s direction.  

The price has moved down strongly and has much room to fall further after breaking below the former support level at 1.2773. The price could now fall as far as 1.2650.

Markets have been hit by risk-off sentiment which has boosted the Dollar at the expense of the Pound, which currently seems to be the weakest major currency. Additionally, the U.K. seems unable to resolve its trade dispute with the E.U. and time is running out to fix this. This is also hitting the Pound.

I think the price is likely to fall further today, and traders have an opportunity on the short side below 1.2750 and until 1.2650 is reached.

GBP/USD

Regarding the GBP, the Governor of the Bank of England will be giving a minor speech at 8:30 am London time. Concerning the USD, the Chair of the Federal Reserve will be testifying before Congress at 3:30 pm.

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