GBP/USD Forex Signal

12 June 2017 7:05:30 AM

By: DailyForex.com

Last Thursday’s signals were not triggered as there was insufficiently bullish price action at 1.2921.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2921 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

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3075, 1.3117 or 1.3136.
  • 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

When polls closed in Britain last Thursday and an exit was released showing an inconclusive result, the Pound dropped sharply through a few supportive levels, which have now been wiped off the chart and are no longer relevant. However, as it became apparent that the Conservatives will be able to cling onto power for some months and possibly even a few years, the currency has stabilized, but must remain potentially weak as with such a thin government overseeing Brexit negotiations, Britain will be extremely vulnerable to political shocks.

I believe the Pound may recover in the short-term, but is bound to fall further over a horizon of a few weeks or months.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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