GBP/USD Signal Today - 30/12: Limited Movement (Chart)

(MENAFN- Daily Forex) My previous GBP/USD signal on 16th December produced a losing short trade from the rejection of the resistance level at 2667's GBP/USD Signals

• Risk 0.75%.
• Trades must be entered prior to 5pm London time today.

Long Trade Ideas

• Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 timeframe immediately upon the next touch of $1.2555or $1.2502.
  
• Place the stop loss 1 pip below the local swing low.
• Move 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.

Short Trade Ideas

• Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 timeframe immediately upon the next touch of $1.2589 or $1.2609.
• Place the stop loss 1 pip above the local swing high.
• Move 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.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money GBP/USD Analysis

I wrote in my previous GBP/USD forecast two weeks ago that price was likely to range between nearby support and resistance levels. I was wrong about that.

The technical picture now is more bearish in the sense that the price is lower, but the key takeaway about this currency pair is that both the British Pound and the US Dollar are showing relative strength, with the US Dollar taking the lead.

As both are strong currencies, and as markets are quiet on this year-end Monday without any obvious rally going on, we are likely to see very limited price movement today.

Limited movement means that if you must trade this currency pair, the best strategy to adopt today will likely be to scalp bounces off the nearest support and resistance levels.

EURUSD Chart by TradingView

The resistance level at $1.2589 looks likely to be strong, so that might be the best scalping opportunity that could set up today.

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

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