GBP/USD Forex Signal 06.01: Strong Overhead Resistance

(MENAFN- Daily Forex) My previous GBP/USD signal on 29^th December gave a profitable long trade from the support level at $1.3473.

Today's GBP/USD Signals

• Risk 0.75%.
• Trades may only be entered before 5pm London time Wednesday.

Long Trade Ideas

• Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.3546, $1.3531, or $1.3502.
• 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.
• Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.

Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money Short Trade Ideas

• Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.3561, $1.3587, or $1.3656.
• 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.
• Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.

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.

EURUSD Chart by TradingViewGBP/USD Analysis

I wrote in my previous GBP/USD forecast on Monday last week that trades from reversals at either $1.3473 or $1.3534 would make sense, due to the prevailing range being likely to hold. This was an accurate and profitable call.

GBP/USD is trading now just above $1.35, with intraday ranges stretching roughly between $1.3520 and $1.3560, as the pair benefits from a softer US Dollar and improving risk sentiment. Dollar weakness is linked to a retreat in the US Dollar Index and growing expectations that the Fed will move closer to an easing cycle later in 2026, which is weighing on the greenback across the majors.​

Risk sentiment has improved notably, with global equities holding firm and FX market updates highlighting growing risk appetite and pressure on the safe-haven Dollar, which is helping GBP/USD grind higher.

The price action is printing a sequence of higher lows on the intraday charts, reinforcing the bullish bias and suggesting dip-buyers are increasingly willing to step in above former resistance levels.​

Technically, the pair has overcome the big round number at $1.3500 and is now trading solidly above it – a classic bullish sign in trend continuation setups. The resistance level at $1.3561 stands out as today's pivotal point; a sustained break above here would likely open the door toward the higher resistance at $1.3587 which could then trigger a fast rise all the way to the next resistance level at $1.3656.​

Given the improving risk tone, weakening Dollar, and constructive technical structure above $1.3500, my directional bias is bullish. A long trade entry could be a good idea if we get two consecutive higher H1 closes above $1.3561, or even better, above $1.3587, provided there are no significant upper wicks on either candlestick.​

There is nothing of high importance scheduled today regarding either the GBP or the USD.

Ready to trade our daily Forex signals? Here is our list of the top 100 Forex brokers list worth reviewing.

MENAFN06012026000131011023ID1110563737