Home Forex Signals GBP/USD Forex Signal: Weakly Bullish Above 1.2208 – DailyForex.com

GBP/USD Forex Signal: Weakly Bullish Above 1.2208 – DailyForex.com

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The technical picture is now a little less bullish than it was, and certainly less bullish than the EUR/USD currency pair is which is significant.

Watch for bullish break above 1.2300 area.

Yesterday’s signals were not triggered as the bullish reversal at 1.2208 only happened after the London close. However, this predicted support level was very accurate at catching yesterday’s low price. Taking a long at 1.2335 was also mentioned which was only successful for about 19 pips of profit.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2296 or 1.2371.
  • 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.
  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2244 or 1.2208.
  • 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.
  • 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.

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GBP/USD Analysis

I wrote yesterday that I would keep a bullish outlook as long as the support level at 1.2296 held, and I would be prepared to take a bullish bias and a long trade entry if the price could get above 1.2335 by the New York open.

This was a mixed call: the level at 1.2296 was pivotal, but a long trade at 1.2335 gave barely 20 pips of profit before reversing strongly and going on to take out the swing low.

The technical picture is now a little less bullish than it was, and certainly less bullish than the EUR/USD currency pair is which is significant.

We see that the bullish price channel, shown in the chart below, continues to hold. However, we also see a major lower high formed by recent price action as well as new lower resistance at 1.2296. These are bearish signs.

As the bullish situation is a little threatened, I would only like to take a long trade today at a bullish bounce at about 1.2208, ideally rejecting the round number at 1.2200 plus the channel’s lower trend line. We have a lot of supportive confluence in this area.

GBP/USD

There is nothing of high importance due today concerning the GBP. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.

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