Forex Signals – GBP/USD Forex Signal: Bullish Above 1.4100
The pound is leading Forex recovery against recent USD strength.
Last Monday’s GBP/USD signals were not triggered, as none of the key support or resistance levels identified that day were reached.
Today’s GBP/USD Signals
Trades may only be taken before 5pm London time today.
- Short entry with a limit order immediately upon the next touch of 1.4240.
- Use a volatility-based stop loss.
- Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
Long Trade Idea
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4096.
- Place the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the price reaches 20 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.
I wrote last Monday that the price was now rising over the short-term at a new 50-day high after a bullish breakout, so the picture and outlook were clearly bullish. I thought that we were likely to see higher prices over the course of today and possibly over the rest of this week, and that day traders should focus on this pair for short-term long trades.
This was an excellent call, as it was accurate and profitable, with the price rising very strongly last Monday and giving good long trade opportunities.
We saw the price peak at about 1.4150 before pulling back to the area of the round number at 1.4100 as the USD strengthened, but the price has turned bullish again over recent hours and the pound appears to be leading the recovery against the USD.
This currency pair seems to still have bullish momentum and looks poised for another bullish move. I will take a bullish bias until 1.4240 if we get two consecutive hourly closes above yesterday’s high. Yet, I think that the best opportunity here would be a long from a bullish bounce, which might set up later rejecting the new nearest support level at 1.4096.
Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time. There is nothing of high importance due today concerning the GBP.