GBP/USD Forex Signal – 10 October 2018

By Adam Lemon

Yesterday’s signals were not triggered, as unfortunately the low of the day was made a few pips above the support level of 1.3023.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm London time today.

Short Trade

— Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3217.

— Place the stop loss 1 pip above the local swing high.

— Adjust 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 run.

Long Trade

— Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3128.

— Place the stop loss 1 pip below the local swing low.

— Adjust 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 run.

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 yesterday that the British Pound remained relatively bullish and so if the U.S. Dollar weakened we could expect further rises. The support levels above the psychologically important level of 1.3000 held. If the price turned bullish and could get established above the recent highs at about 1.3133, I would take a bullish bias later. This is exactly what happened, with the price rising very strongly during yesterday’s New York session and printing new higher support close to 1.3133. There is good bullish momentum here, and I am bullish above 1.3127, expecting a rise to at least 1.3217 as quite a likely scenario today. The strong bullish momentum here is worth paying attention to and is probably driven by signals coming from the E.U. that a Brexit deal with the U.K. is becoming increasingly likely.

Concerning the GBP, there will be a release of GDP and Manufacturing Production data at 9:30amLondon time. Regarding the USD, there will be a release of PPI data at 1:30pm.

This article provided by NewsEdge.