GBP/USD Signal Today 02/04: Consolidation Continues (Chart)

(MENAFN- Daily Forex) My previous GBP/USD signal on 25th March gave a losing short trade from the bearish rejection of the resistance level which I had identified at $1.2947.

Today's GBP/USD Signals

Risk 0.75%.

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

Top 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 $1.2870 or $1.2853.
• 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 $1.2980 or $1.3019.
• 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 price action that occurs at the given levels/USD Analysis

I wrote in my previous GBP/USD forecast on Tuesday last week that the supportive zone below between $1.2870 and $1.2853 looked strong and likely to hold. This was a good call as it held when tested the next day and has held ever since, but it was useful on the day.

This pair is dominated by a mildly bearish consolidation between $1.2870 and the big round number area of $1.3000. This area is very likely to hold until Trump's new tariffs are announced later today, although this will not happen until after the London close.

This currency pair is dull and not in focus right now, but if either extreme of the range is tested and rejected, it could be a good trade entry.

I have no directional bias.

After Trump's tariffs are announced, we are likely to see much more volatility in the Forex market, especially in the US Dollar, so this range might well break down as we move into tomorrow.

There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change Forecast at 1;15pm London time.

EURUSD Chart by TradingView

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