SIGNAL FOREX

GBP/USD Forex Signal: More Bearish Below 1.2850 – DailyForex.com


GBP/USD: Yet strong support at 1.2785

Yesterday’s signals were not triggered, as none of the key levels identified as support or resistance have been reached yet.

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 1.2911 or 1.3023
  • 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 1.2785 or 1.2650.
  • 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 next question here was whether the price would be able to continue to rise and get established above 1.2911 although I thought that the really crucial level was going to be the resistance at 1.3023.

As it turned out, the picture became more bearish over the past day, with bulls failing to even push the price up enough to touch the next resistance level at 1.2911.

The price is moving down as the London session gets underway, and it seems that new resistance may have formed at 1.2850 which will now push the price down further.

It is notable that the Euro was able to rise quite firmly yesterday while the British Pound really could not.

Despite the short-term bearishness, I see the nearby support level at 1.2785 as likely to be very strong, so I will be happy to take a long trade later if get a bullish bounce off that level if and when it is reached.

As the direction is not very clear here today, be careful of managing trades into the start of the New York session as there is some important U.S. data on new jobs numbers which will likely push the price around if the numbers contain any surprises.

GBP/USD

Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15 pm London time followed 15 minutes later by Final GDP numbers. There is nothing of high importance scheduled today concerning the GBP.

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