SIGNAL FOREX

GBP/USD Forex Signal: Ranging from 1.3721 to 1.3900 – DailyForex.com


Today’s pivotal point will likely be at 1.3808.

.Last Monday’s GBP/USD signal was not triggered as none of the key levels were reached that day.

Today’s GBP/USD Signals

Risk 0.75%.

Trades must be taken before 5pm London time today.

  • 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

  • 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 if the price broke below the new flipped support at 1.3843, the price could hit the support level at 1.3808 which looked likely to be strong.

I was eventually correct but 1.3808 was only reached the next day.

The technical picture is dominated by more than two weeks of the price ranging between 1.3721 and 1.3900. Both these levels look likely to be strong if reached but that is unlikely to happen today.

Over the short term, the price is moving down from a short-term bearish head and shoulders structure which has rejected the resistance level at 1.3844. The USD is strong everywhere although the GBP has held up against it relatively well suggesting the GBP is not especially weak.

The price now looks likely to continue downwards to hit the support level at 1.3808 which is likely to be pivotal – a clean break below this level will probably result in a further fall.

Due to the wider ranging environment, I think the best approach to trading this currency pair today will be entering from a reversal at any key level which is reached, but as it is likely to be a low-volume Monday trading session, trades should be monitored carefully and conservatively on a short time frame.

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

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