SIGNAL FOREX

GBP/USD Forex Signal: Pivotal Point Likely at 1.2252 – DailyForex.com


The USD is being bought again today, so although the Pound is one of the relatively stronger major currencies, the price is being pushed down towards the pivotal support level at 1.2252 which is confluent with the major psychological quarter-number at 1.2250.

Yesterday’s signals were not triggered as unfortunately the bearish price action took place a few pips above the resistance level identified at 1.2358.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm London time today only.

Short Trade Idea

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2515.
  • 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.
  • Remove 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 1.2252 or 1.2139.
  • Put 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.
  • 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 yesterday that I thought everything would now hinge on whether the USD remains weak and how the price reacts if and when it reaches 1.2358. The technical picture would become considerably more bullish if the price can break up above that level.

This was a good call as the price did fail to get established above 1.2358 so although that resistance level has become invalidated, it played a role in capping yesterday’s high.

The USD is being bought again today, so although the Pound is one of the relatively stronger major currencies, the price is being pushed down towards the pivotal support level at 1.2252 which is confluent with the major psychological quarter-number at 1.2250.

I think it is likely that the price will fall today to hit 1.2252 and then the reaction there will be pivotal in determining what happens next. The earlier in the London session this level is reached, the more potential there will be for a long trade at a bullish bounce or a short trade if the price spends two hours consecutively below 1.2250.

GBP/USD

There is nothing of high importance scheduled for today concerning either the GBP or the USD.

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