GBP/USD Forex Signal

06 June 2017 7:13:38 AM

By: DailyForex.com

Yesterday’s signals were not triggered as the bearish price action took place a little way above upper limit of the identified resistance zone at 1.2928.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2910 or 1.2831.
  • Put 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.

Short Trade 1

  • Short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the trend line shown in the chart below currently sitting at about 1.3025.
  • Put 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.

GBP/USD Analysis

I had thought that the pair would be likely to continue to range predictably between the key support and resistance levels shown in the chart below, at least until the British election on Thursday. However, we are seeing signs of a bullish break above the resistant structure under 1.2928. A break above this area could see a rise to about 1.3025 before probably being held by the next trend line shown in the chart. Although there has been a new poll showing the governing party in the U.K. with a large lead, betting markets continue to suggest a tightening race.

GBPUSD

There is nothing due today concerning either the GBP or the USD.

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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