GBP/USD Forex Signal

13 June 2017 7:28:13 AM

By: DailyForex.com

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2610.
  • Place 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.
  • Remove 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 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2831.
  • Place 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.
  • Remove 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.

GBP/USD Analysis

The Pound extended its recent drop yesterday on continued British political instability, with the minority Conservative still not having reached a formal deal with a smaller party to secure a locked-in Parliamentary majority required to govern. However, the expectation is that such a deal will be reached, and the Conservatives will be able to continue for approximately 2 years. Technically, there is now a double bottom at the post-election low around 1.2640, and we are seeing a bullish rise as part of a pullback. I still maintain a longer-term bearish outlook as the British government will have such a small Parliamentary majority, it will probably not be able to fully take care of business.
GBPUSD

Concerning the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be a release of PPI data at 1:30pm.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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