Slight Bullish Bias - GBP/USD shows potential for a mild uptrend with key support at $1.2617. Monitor H1 reversals and manage risks effectively for trading opportunities.

My previous GBP/USD signal on 13^th February was not triggered.

Today’s GBP/USD Signals

• Risk 0.75%.
• Trades must be taken before 5pm London time today

  (Click on image to enlarge)

   

Long Trade Ideas

• Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2617, $1.2538, or $1.2507.
• 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

• Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.2715 or $1.2786.
• 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 in my previous forecast for the GBP/USD currency pair just over one week ago that the technical picture had become more bullish, but it was not clear that the price would be able to advance beyond the $1.2650 area.

This was not a great call as there was a powerful bullish breakout beyond $1.2650 but it quickly came crashing down, leading to a loss for bulls. Forex markets have become quite dull as the US Dollar consolidates and major currency pairs like this one just chop around.

The price chart above shows a consolidation, although there are two bullish technical features:

• The clear support level at $1.2617
• The short-term ascending upper trend line, with a hint of a lower symmetrical trend line. If the lower trend line becomes obvious, the price channel would then carry much more weight.

I think the price has a chance to rise today, and a bullish bounce off the support level at $1.2617 could be a perfect entry signal.

There is nothing of high importance scheduled today concerning either the GBP. Regarding the USD, there will be a release of the most recent FOMC Meeting Minutes at 7pm London time.

More By This Author: