GBP/USD Forex Signal – 07 June 2018

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 be taken between 8am and 5pm London time today only.

Short Trades

— Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3482 or 1.3521.

— 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.

Long Trades

— Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3388 or 1.3338.

— 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.

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 had no directional bias yesterday, but I noted that a continuing upwards move would not be a surprise following the bullish break of 1.3409. The price is rising with a clear sequence of higher lows and highs, and has room to rise further, to at least 1.3482. However, looking at the bigger picture, the Pound is not making the gains against the Dollar that some other currencies are, particularly the Euro, which suggests this is not the correct pair to be trading to be short of the U.S. Dollar right now. There is still a long-term bearish trend, and if the U.S. Dollar starts to strengthen, it will probably do so relatively strongly against the Pound. Above the current price near to the first resistance level is also the psychologically important round number of 1.3500 which could be another factor preventing much more of a rise. I have no directional bias here today, but if I must guess, I think an upwards move is most likely to happen as the action does suggest still higher prices.

There is nothing due today concerning either the GBP or the USD.

This article provided by NewsEdge.