(MENAFN- Daily Forex) My previous GBP/USD signal last Tuesday was not triggered as there was no bullish price action when my support level at $1.2500 was first reached that day.
Today's GBP/USD Signals
Risk 0.75%.
Trades must be entered prior to 5pm London today.
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Forex Brokers1 Get Started 74% of retail CFD accounts lose money Long Trade Ideas
Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2435 or $1.2384. 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 H1 timeframe immediately upon the next touch of $1.2496 or $1.2502 or $1.2563. 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.
EURUSD Chart by TradingViewGBP/USD Analysis
I wrote in my previous GBP/USD forecast last week that the price was likely to remain between $1.2609 and $1.2500. This was not a good call, as the price broke down.
The price then fell further, as the UK may be starting to fall into recession, and the Bank of England really needs to cut rates but will find it difficult to do so. The US Dollar also remains very strong.
However, over the last couple of days, we have seen the price rise quite strongly from the recent multi-month low as the Pound is bid again, while the greenback mostly trades sideways.
It is hard to say how much further this price rise will go – it is certainly counter-trend, so it is suspect.
If I must make a forecast about today, the price looks likely to rise as long as it remains above the new support level at $1.2435, which will likely be today's pivotal point.
The target for bulls will logically be the big round number and confluent resistance at $1.2500, but as today is a Monday it may well be a very quiet day in the market with very little volatility, so it will not be surprising if this level is not reached.
There is nothing of high importance due today concerning either the GBP or the USD.
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