GBP/USD Forex Signal: Bullish, Approaching 9-Month High Price – 28 March 2023
Established within ascending price channel.
My previous GBP/USD signal on 20th March produced a profitable long trade from the bullish rejection of the key support level which I had identified at $1.2167.
Trades may only be entered prior to 5pm London time today.
Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.2292 or $1.2266.Put the stop loss 1 pip below the local swing low.Adjust the stop loss to break even once the trade is 25 pips in profit.Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.2368 or $1.2467. Put the stop loss 1 pip above the local swing high.Adjust the stop loss to break even once the trade is 25 pips in profit.Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
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.
I wrote in my previous forecast for the GBP/USD currency pair on Monday last week that was weakly bullish, with room to rise before reaching the nearest resistance level at $1.2264. I was looking to enter a new long trade if we got a bullish bounce at the nearest support level of $1.2167, targeting the resistance level at $1.2264.
This was a good call as it correctly identified a profitable trade opportunity.
The technical picture remains bullish, as the downwards trend in the US Dollar continues over both the long and short terms. The British Pound is quite strong, and the price is now only about 100 pips from its highest price since June 2022.
Technically, the bullish case is strengthened by the symmetrical ascending price channel within which the price is firmly established, as shown in the price chart below.
Right now, the price seems to be running into some minor resistance at about $1.2325, but this can be overcome. A pullback now to the nearest support level at $1.2292 followed by a firm bullish bounce should provide an excellent opportunity to enter a new long trade. This will look even better if the rejection of the confluent round number at $1.2300 is clear at the same time.
Concerning the GBP, the Governor of the Bank of England will be testifying before the British Parliament about the US banking crisis at 9:45am London time. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm.
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