GBP/USD – The Pair Looks Choppy Below $1.2437

Amsterdam
February 1, 2023
GBP-USD
  • Make sure to take these trades today only precisely before 5 PM London time.
  • Risk: 0.75% per trade

GBP/USD (Short Position) –

  • Open these positions after a bearish price action reversal on hourly time frame, once price touches $1.2437 or $1.2368.
  • Stop Loss: place at 1 pip above local swing high and adjust to break even once the trade is in profit by 25 pips.
  • Take Profit: Remove 50% of trade as profit once the stop loss is adjusted.
  • Let the remainder of the trade position run after taking profit.

GBP/USD (Long Position) –

  • Open these positions after a bullish price action reversal on hourly time frame, once price touches $1.2230 or $1.2301.
  • Stop Loss: place at 1 pip below local swing low and adjust to break even once the trade is in profit by 25 pips.
  • Take Profit: Remove 50% of trade as profit once the stop loss is adjusted.
  • Let the remainder of the trade position run after taking profit.

AS GBP does not await any important news releases today, the chances for any significant price moves are thin for the GBP/USD pair. We will be seeing some consolidation and it will be a good opportunity to take a short scalp from $1.2368 if possible during the London session. The British economy is not doing any better but still the pound is not the weakest currency against USD at the moment. As the UK inflation is preventing the pound from falling too low as of now.

Forex Forecast

  • GBP/USD: A long-awaited dovish shift could result from the Fed decision, which would probably hurt the US Dollar.
  • USD/JPY: USD/JPY continues its rally.
  • EUR/JPY: The pair will remain noisy and bigger moves can be expected.
  • USD/CAD: USD/CAD continues its downtrend.
  • GBP/CAD: GBP/CAD currency rate gained traction broadly with the UK service sector being under pressure.
  • XAU/USD: The XAU/USD gold prices are on track to record 5% monthly gains.
  • BTC/USD: The pair may see a significant drop with the hesitant market.
  • ETH/USD: The Ethereum market is still going through consolidation.
  • AUD/USD: A lot of volatility and erratic behaviour is expected for the pair.
  • EUR/GBP: The pair may edge towards 0.90 in the long term as per economists.
Author Amsterdam