GBP/USD Forex Signal 03/09: Heavy Near 2-Month Low (Chart)

(MENAFN- Daily Forex) My previous GBP/USD signal yesterday produced a powerfully profitable short trade entry from the bearish inside bar which rejected the resistance level which I had identified at $1.3550.

Today's GBP/USD Signals

Risk 0.75%.

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

• Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.3308 or $1.3221.
• 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 $1.3420, !.3400, or $1.3489.
• 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 yesterday that I was bearish and expected more downside following the recent breakdown. This was a great call and my entry point for a short trade was the optimal trade of the day.

The price seemed to find a floor some hours ago and make a strong bullish bounce but has come down again to look heavy and weak. I think the price is likely to reach the support level at today, which will probably be the day's pivotal point.

If the price reaches $1.3420 first before retesting support, this could be a great entry for a short trade.

The reasons for a flow into the US Dollar are not so clear, but we are seeing it happen now and as it's the start of a new month and the end of August, that could be significant. So, any long trade taken should be monitored as a scalp.

EURUSD Chart by TradingView

Regarding the GBP, there will be a Monetary Policy Report Hearing at 2:15pm London time. Concerning the USD, there will be a release of JOLTS Job Openings data at 3pm.

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