GBP/USD Forex Signal

14 June 2017 6:55:10 AM

By: DailyForex.com

Yesterday’s signals were not triggered as neither of the key levels were ever reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Protect any open trade by 6:30pm.

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2610.
  • 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 entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2831.
  • 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

The Pound recovered, and continues to rise, as it becomes clearer that the British Government will very shortly announce a deal which should allow them to govern for 2 or 3 more years before another general election would need to be held.

There may be minor resistance at 1.2800, and a test above that of 1.2831 will be very interesting.

The price may recover even more in the short-term, especially if the FOMC does not raise U.S. interest rates later, but I maintain a longer-term bearish outlook.GBPUSD

Concerning the GBP, there will be a release of Average Earnings Index data at 9:30am London time. Regarding the USD, there will be a release of CPI and Retail Sales data at 1:30pm, followed by Crude Oil Inventories at 3:30pm. Finally, we will get the FOMC Statement, Federal Funds Rate, and Economic Projections at 7pm with the usual Press Conference half an hour later.

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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