The GBP/USD signal I shared on January 13 led to a successful short trade at the $1.3486 resistance level.
Today’s GBP/USD Signal
Risk set at 0.75%.
Make sure trades are placed by 5 PM London time on Wednesday.
Long Trade Suggestions
- After a bullish reversal in the H1 timeframe, go long when touching $1.3432, $1.3402, or $1.3332.
- Set a stop loss 1 pip below your lowest local swing.
- Once in profit by 25 pips, adjust your stop loss to break even.
- At the 25-pip profit mark, take 50% of the position off and leave the remainder open.
Short Trade Suggestions
- Short the next touch at $1.3486, $1.3503, or $1.3531 after a bearish reversal in the H2 timeframe.
- Set your stop loss 1 pip above the highest local swing.
- As with the long trades, adjust your stop loss to break even at a 25-pip profit.
- After hitting that 25-pip target, exit 50% of your position while keeping the rest open.
The classic indicator of a “price reversal” often involves an hourly candlestick close, like pin bars, dojis, or engulfing patterns, especially with higher closing prices. Keeping an eye on these movements at specific levels can be advantageous.
GBP/USD Analysis
In my last GBP/USD forecast, I suggested the price might be caught in a range, so I recommended a reversal strategy from the range extremes.
However, that strategy didn’t work out as I had hoped. A more bearish approach would have yielded better results.
Currently, the technical landscape feels unusual. We’ve seen a significant rally this week that many didn’t anticipate. Right now, the market’s focus seems to be less on technical trends and more on unique geopolitical issues, including potential trade disputes and tariffs between the EU and US over Greenland, along with the looming threat of conflict between the US and Iran.
This shift has strengthened the British pound while the US dollar appears weaker, pushing prices up. Nevertheless, the price is now encountering resistance, and technical indicators don’t seem as reliable at this moment. Geopolitical events are likely to weigh heavily in trading, which could add an element of risk.
Even so, there might be opportunities for one or two short scalps near the resistance level around the pivotal $1.3500 mark, but it’s wise to stay alert for news developments, especially those involving President Trump, tariffs, and Greenland.
At present, there doesn’t seem to be any significant news affecting the pound or the US dollar today.
