GBP/USD Signal Today 28/01: Bearish Double Top (Chart)

(MENAFN- Daily Forex) US Dollar boosted by Trump tariff comments while technical suggest bearish double top at $1.2500, pointing towards lower prices.

My previous GBP/USD signal one week ago produced a profitable long trade from the bullish reversal at the support level of 2227's GBP/USD Signals

Risk 0.75%.

Trades must be entered prior to 5pm London time today only Trade Ideas

• Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2401, $1.2376, or $1.2288.

• 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 $1.2471, $1.2563, or $1.2589.

• 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.

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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/USD Analysis

I wrote in my previous GBP/USD forecast last week that a long trade from any of the nearby support levels would probably be a good trade, even through it was counter trend. This was an accurate and profitable call.

The technical picture now is more bearish despite the further rise in price which we have seen over the past week, due mainly to the bearish top at $1.2500 which is a major round number. Added to this is the fact that the USD is getting a boost from President Trump's comments a few hours ago threatening to impose more tariffs, and it seems likely that the price will descend over the coming day or so, although it is not clear by how much, so I don't have a good target.

So, I think the best approach here today would be a short trade from $1.2471 if it is reached today, provided there is a clear bearish rejection of the level when it is first reached.

There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

EURUSD Chart by TradingView

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