GBP/USD Forex Signal: Bullish Run Retests 1.3900 – DailyForex.com

The pair is more bullish above 1.3900.

Last Monday’s GBP/USD signals were not triggered as there was insufficiently bearish price action when the price first reached the resistance level identified at 1.3794 to trigger a short trade entry.

Today’s GBP/USD Signals

Risk 0.75%.

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

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

  • 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.

Long Trade Ideas

  • 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.

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GBP/USD Analysis

I wrote last Monday that we had a very balanced and flat picture and as it was a Monday it was likely to be dull, with key levels holding.

I thought a good approach would be to seek scalp trades from reversals at either 1.3794/1.3800 or 1.3724.

This was a partially good all as the resistance around 1.3800 did hold for a few hours, but this only gave a little profit before the price turned around to decisively break above 1.3800 and continue upwards.

The chart shows the British pound has been very strong over the past few days, rising firmly to challenge the resistance 1.3900 area which has acted as strong resistance over recent weeks.

The price now seems to be selling off from 1.3900 over the short term.

Due to the strength of this resistance, I think the best approach today will be to see 1.3900 as a very pivotal point, ready to take a short trade from another failure there, or to take a bullish bias following two consecutive hourly closes above that level during today’s London session.

Beware of holding any trade into the FOMC release due later today after the London close.

GBP/USD

Concerning the USD, the FOMC will release its statement and federal funds rate at 7pm London time. There is nothing of high importance scheduled for today concerning the GBP.

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