GBP/USD Forex Signal - Wednesday, August 9

Yesterday’s signals were not triggered as none 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.

Long Trades

· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2950 or 1.2918.

· 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 Trades

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3061 or 1.3100.

· 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 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 price of this pair has behaved quite similarly to the EUR/USD, and although the support and resistance levels at 1.3061 and 1.2950 have not quite been hit, they have made their presence felt. The Pound is getting a little spike up this morning and seems to be enjoying a little buying. Perhaps long-term buyers are seeing some value here close to 1.2950. I think this level is going to be crucial support and so is more likely to hold, especially as it has 1.2918 providing support just below it, strengthening the area. A break below 1.2918 would be a very bearish sign, signalling the complete ending of the long-term upwards trend.

(Click on image to enlarge)

GBPUSD