GBP/USD Signal 03/07: Bulls Rebound From $1.3561 (Chart)

(MENAFN- Daily Forex) My previous GBP/USD signal on 18th June produced a profitable short trade from the rejection of the resistance level at $1.3467.

Today's GBP/USD Signals

Risk 0.75%.

Trades must be taken prior to 5pm Tokyo time Friday Trade Ideas

• Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.3623, $1.3561, or $1.3512.
• 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

• Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.3672, $1.3708, or $1.3769.
• 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 about two weeks ago that the day's pivotal point looked likely to be $1.3467, and I thought a short scalp from that area would probably be the day's best opportunity which might set up. This was a good and profitable call.

The technical picture now is much more bullish, after the price climbed for many days, reaching a new multi-month high price above $1.3700 before retracing this week.

The bullish rebound at the support level of $1.3561 is a bullish sign. However, the two new lower resistance levels overhead were printed by bearish price action making a lower high, so there is a bearish sign as well.

It may be wise for bulls to wait until the price gets established above $1.3672 or even $1.3708 before entering any long trade, and I will take this approach myself.

On the other hand, if the price falls again to either of the two nearest support levels, there could also be a possibility of a short-term long trade there.

I have no directional bias and would look to scalp long or short here today depending upon the scenario which sets up.

EURUSD Chart by TradingView

There is nothing of high importance due today regarding the GBP. Concerning the USD, there will be releases of the Non-Farm Employment Change and Average Hourly Earnings Unemployment Claims data at 1:30pm London time, followed by ISM Services PMI at 3pm.

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