Technical Analysis

GBP/USD Forex Signal: Consolidating Above $1.3500 Area

There is a lack of direction in this currency pair.

Last Monday’s GBP/USD signal was not triggered as the bullish price action occurred slightly below the level identified at $1.3512 that day.

Today’s GBP/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of $1.3458 or $1.3401.
  • 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 time frame timeframe immediately upon the next touch of $1.3587 or $1.3664.
  • 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.

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 Monday that the price was probably going to be quiet and directionless over the day. I expected that the price would remain between $1.3512 and either $1.3552 or $1.3587. This was correct apart from a brief dip below $1.3512.

There has been little change to the technical picture in this currency pair since Monday. The former support level at $1.3512 and resistance level at $1.3552 have been invalidated. The price is basically consolidating just above the big round number at $1.3500 and is bound by a range between $1.3458 and $1.3587. This means that the price has more than 100 pips to chop around in. I strongly believe this range will hold today, but tomorrow’s US CPI (inflation) data release could change that.

I think the price movement within the range will be choppy, so I would refrain from trading this pair today except from a bullish reversal at $1.3458 or a bearish reversal at $1.3587.

GBP/USD

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

Buka akaun dagangan patuh syariah anda di Weltrade.
Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button