October 12, 2021
  • October 12, 2021

GBP / USD Forex Signal: Bearish Below $ 1.3575

By on October 6, 2021 0

The pound is holding up relatively well against a strong dollar.

Last Monday’s GBP / USD signal was not triggered as there was no bearish price action when price first hit the resistance level of $ 1.3577 that day.

Today’s GBP / USD Signals

Risk 0.75%.

Transactions can only be entered before 5:00 p.m. London time today.

Short business idea

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

  • Adjust the stop loss to reach the breakeven point once the trade reaches 20 pips of profit.

  • Take out 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position work.

Long business ideas

  • Go long after a bullish price reversal in the H1 period immediately after the next contact of 1.3577, 1.3527 or 1.3502.

  • Put the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to reach the breakeven point once the trade reaches 20 pips of profit.

  • Take out 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position work.

The best method to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside candle, or even just a engulfing candle with a higher close. You can mine these levels or areas by observing the price action that occurs at the given levels.

GBP / USD Analysis

I wrote last Monday that the ups and downs were fairly balanced over the short to medium term, with key support at 1.3527 and key resistance at 1.3577.

I have seen that the best strategy to trade this currency pair today is to wait for two consecutive hourly close above 1.3577 to trigger a bullish bias, or two consecutive hourly close below 1.3527 to trigger a bias. bearish.

It was a good call because once the bullish trigger came, the price rose about 15 more pips for the rest of the day.

The US dollar remains strong, but the British pound is holding up relatively well against it. This suggests that bullish moves are likely to be more interesting than bearish moves here, but there is currently little momentum either way.

Much like last Monday, the reversal of the support / resistance level at 1.3577 will likely be the major pivot point of the day.

I’ll be happy to go long after a bullish rebound to 1.3577 if it sets in later today.

If we get a strongly bullish hourly candlestick in the first half of today’s London session which closes above $ 1.3650, we will likely see the price continue to move higher. to reach at least the resistance level of $ 1.3687 at today’s New York close.

Regarding the USD, there will be a release of the ADP nonfarm employment forecast at 1:15 p.m. London time, followed by crude oil inventories at 3:30 p.m. There is nothing very significant expected regarding the GBP.