GBP/USD Forex Signal Today 04/02: Weakly Bullish (Chart)

(MENAFN- Daily Forex) My previous GBP/USD signal last Tuesday was not triggered's GBP/USD Signals

Risk 0.75%.

Trades may only be taken before 5pm London time today.

Long Trade Ideas

• Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2376 or $1.2335.

• 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

• Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.2471, $1.2496, 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.

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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 a week ago that the picture had become more bearish, so I was looking for a short trade from a reversal at $1.2471. This level was not reached that day, but the price did fall over the near term, so my approach was correct.

The technical picture is a bit choppy but also, we see low volatility, despite all the tariff-related turmoil in the Forex market. This has affected the Canadian Dollar and emerging currencies such as the Mexican Peso, leaving this currency pair quite untouched.

Technically, it seems as if the support level just below at $1.2376 could be quite solid, but there is no short-term momentum, and the price is equally far away from the nearest resistance level at $1.2471.

I think the price is likely to remain contained between these two levels over today's London and New York sessions, so scalping reversals off either level is likely to be the best strategy if you must trade this currency pair. However, there will likely be better opportunities elsewhere in the Forex market, possibly in the EUR/USD currency pair.

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

EURUSD Chart by TradingView

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