SIGNAL FOREX

GBP/USD Forex Signal: Topping Near 1.3600? – DailyForex.com


A long trade from a bullish bounce at 1.3621 would probably be the best potential trade set-up.

Last Thursday’s GBP/USD signals produced profitable signals both short from 1.3667 and long from 1.3621.

Today’s GBP/USD Signals

Risk 0.75%.

Trades may only be entered prior to 5pm London time today.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3621 or 1.3667.

  • 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3560, 1.3527, or 1.3502.

  • 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 Tuesday that the price was well contained within a symmetrical bearish price channel over the medium term, which was a bearish sign. I saw a good potential short trade at 1.3600, but the price consolidated below that area of resistance instead of reversing cleanly, avoiding generating a short trade entry signal.

My call was useful in a way, as the break above the upper trend line of the bearish price channel which I identified that way produced a meaningful directional move up of about 100 pips. The price then went on to fail at about 1.3700, which may now have printed a bearish double top – this is a long-term high price peak, although it may still be broken soon.

There is a long-term bullish trend in this currency pair, but I am wary of taking any new long trades right now while the price remains below 1.3700, as it looks like it could act as strong resistance.

I think the support level at 1.3621 will be pivotal today, but the price is likely to be relatively choppy and not give a great deal of opportunity either above or below that. A long trade from a bullish bounce at 1.3621 would probably be the best potential trade set-up.

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

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