 using bullish/bearish price action reversals. Risk 0.75%, set stops, and book profits.){kind=link}
GBP/USD Signals for today
- Risk: 0.75% per trade.
- Entry: Before 5 PM London time today
Long Trade
- Entry: Go long at $1.2500 on the next touch, confirmed by a bullish reversal on the 1-hour timeframe.
- Stop Loss: Place 1 pip below the recent swing low.
- Break Even: Move stop loss to entry at +25 pips profit.
- Partial Profit: Take 50% profit at +25 pips, let the remainder run.
Short Trade
- Entry: Go short at $1.2563, $1.2589, or $1.2609 on the next touch, confirmed by a bearish reversal on the 1-hour timeframe.
- Stop Loss: Place 1 pip above the recent swing high.
- Break Even: Move stop loss to entry at +25 pips profit.
- Partial Profit: Take 50% profit at +25 pips, let the remainder run.
A classic price action reversal can be identified by observing hourly candlestick closes. Specific patterns, like pin bars, dojis, outside bars, or engulfing candles with a higher close, are good indicators. These patterns, observed at key price levels or zones, present opportunities for exploitation.
GBP/USD Analysis
I wrote in my previous GBP/USD forecast yesterday that the resistance level at $1.2589 looked likely to be strong, but I was wrong about that.
Both currencies are strong, so the price is not showing much directional movement.
We have an interesting technical setup guarding the dominant range: there is a bearish double top at $1.2609 and a strong area of support centred on the big round number at $1.2500.
I think the price is likely to remain between these two levels today, so a bounce off either of them could be a good trade entry. The area of resistance at $1.2563 could also be strong.
Be conservative with profit taking, as it is the final trading day of 2024, and there could be liquidations for calendar and tax reasons that might produce strange movements in the price, although that probably won’t be manifested here but more in the US stock market.
No high-impact GBP or USD events are scheduled for today.