(MENAFN- Daily Forex) Advertisement looking for more market signals? get them here! my previous gbp/usd signal last tuesday was not triggered, as there was no bearish price action when the resistance level I had identified at $1.1868 was first reached that day.Today's GBP/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1940 or $1.1868.
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.
Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.Short Trade Ideas
Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.2022 or $1.2170. Put 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 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.GBP/USD Analysis
I wrote in my previous forecast last Tuesday that we were right in the middle of a very flat consolidation with no signs pointing to the likely short-term direction. I did not see any good opportunities anywhere near the price at that time.
We have seen more movement since then, with the Pound having a positive week last week. It reached as high as $1.2150 before falling back over recent days as the US Dollar made a brief recovery.
We have just seen a bullish retracement after an initial downwards movement, but it turned bearish against at $1.2022 and seems to be in the process of making another bearish wave.
It seems likely that the price may keep falling to test the support level at $1.1940 again.
This level looks quite strong , and it should be noted that the support can be felt a few pips above the level, probably starting at about $1.1950.
I think that scalpers could have a good opportunity to make a few long pips from the next touch of $1.1950 / 40, and it may even be a good swing trade entry. I doubt that US Dollar strength will last for much longer in this market.
Concerning the GBP, the Governor of the Bank of England will be testifying before the British Parliament at 3pm London time, simultaneous with a release of US CB Consumer Confidence data.
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