The previous GBP/USD signal on December 2nd wasn’t activated.
GBP/USD signal today
Risk stands at 0.75%.
Trades should be completed by 5pm Tokyo time on Friday.
Long trade ideas
- Enter a long position after confirming bullish price action on the H1 timeframe, following a touch of $1.3326, $1.3289, or $1.3268.
- Set your stop loss 1 pip below your most recent swing low.
- Adjust the stop loss to break even once the trade hits a 25 pip profit.
- After reaching 25 pips in profit, close half of the position while keeping the rest open.
Short trade ideas
- Enter a short position immediately following the next touch of $1.3352, $1.3372, or $1.3397 after a reversal in bearish price action on the H1 timeframe.
- Place your stop loss 1 pip above your latest swing high.
- Modify the stop loss to break even when the trade reaches 25 pips in profit.
- Once at 25 pips in profit, close half of the position and leave the rest open.
A reliable way to spot a classic “price reversal” is to observe the closing of an hourly candlestick—like a pin bar, doji, outside, or engulfing type—that shows a higher close. Monitoring price movements at these levels can be helpful.
GBP/USD analysis
In my last GBP/USD prediction from two days ago, I mentioned that if the price dipped to $1.3201 and bounced back, it could be a solid long entry. Although there was a brief drop below that level, I wasn’t completely off; it wasn’t a clear rebound for a definitive entry signal.
Prices have climbed sharply and continue to rise today, with the US dollar generally struggling against almost all other currencies. This strongly indicates that staying bullish is a smart choice right now.
As of now, shortly after the London market opened, prices have risen to today’s highs and have breached the previous resistance level around $1.3352.
I think it’s logical to pursue long trades here. Typically, the best strategy with this currency pair is to wait for a consolidation or drop, then trade the breakout, all while keeping reward to risk in mind.
There’s nothing particularly significant regarding the pound today. However, unemployment insurance claims for the US dollar are set to be announced at 1:30pm London time.
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