GBP/USD Forex Signal

GBPUSD: Bearish on No Deal Brexit Prospect

Last Thursday’s signals were not triggered, as neither of the key levels were reached that day.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered between 8am and 5pm London time today only.

Long Trade

• Long entry upon the next touch of 1.2429.

• 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.

Short Trade

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2653.

• 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 20 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 wrote last Thursday that despite the relatively uncertain though slightly bullish picture, the fact that we were seeing selling off the round number above at 1.2700 suggested that we were going to see lower prices over at least the first half of the London session. I was wrong, the price in fact moved little over the day. However, the price moved down quite strongly on Friday, and this currency pair is again approaching long-term lows due to Dollar strength as well as Pound weakness as the candidate with the toughest position on Brexit seems poised to win the contest to become Britain’s next Prime Minister.

The picture now is bearish, trending down on all time frames as we approach the London open. This suggests we are likely to see lower prices today, especially if the price moves down on relatively high volatility between 8am and 9am London time today.There is nothing important due today concerning either the GBP or the USD.