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my previous gbp/usd signal on 11th january was not triggered, as there was no bullish price action when the price first reached the support level at $1.2111 that day.Today's GBP/USD Signals
Trades may only be entered between 8am and 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 $1.2100 or $1.2034. 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 Idea
Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.2343. 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
that occurs at the given levels.GBP/USD Analysis
I wrote in my previous forecast for the gbp/usd currency pair that the technical picture had become weakly bullish as the key resistance level at $1.2111 looked to have flipped cleanly to become new support. However, the price was showing little bullish momentum.
There has been very little change since then, excepting the invalidation of a nearby resistance level, and an adjustment of the closest support level at $1.2111 (which was breached) to the round number at $1.2100 , which is likely to be a bit stronger than usual as it also a round number.
The Forex market is dominated right now by a volatile Japanese Yen and a generally weak US Dollar, putting this currency pair out of focus. It is likely that price movements here are going to be secondary results from other things going on in the market, and not much about the British Pound.
For this reason, it might be better for Forex traders to look to trade other currency pairs which are in stronger trends, such as the usd/jpy and the eur/usd currency pairs.
If you are going to trade this pair, a long trade from any bullish bounce which we might see at $1.2100 will probably be the best set up which could come along today.
Concerning the GBP, there will be a release of Claimant Count Change (unemployment data) at 7am London time. There is nothing of high importance due today regarding the the USD.
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