Profitable GBPUSD Forex Trading Strategy Explained

Want a profitable pullback trading strategy for GBP/USD Forex pair?

I will show you a very accurate method using simple support and resistance and price action analysis.

We will start with a theory for beginners and I wi ll explain to you the exact setup and the signal that you should look for.

Then, I will show you a real trading signal on GBPUSD that we spotted on a live stream with my students.

Market Analysis

For this pullback strategy, we will use 2 time frames.

A daily time frame for analysis and hourly time frame for entry confirmation.

Your main task on a daily time frame will be to analyze supports and resistances.

In up-trend, I suggest trading from supports

and in a down-trend, I recommend selling from resistances.

That is how a complete daily time frame analysis should look. I spotted significant support and resistance zones and identified the market trend on a daily chart.

Signal to Buy

After the identification of supports and resistances, wait for its test.

We will look for a pullback strictly from these structures.

After a test, start analysing the hourly time frame for a confirmation.

Your buy signal on support will be a formation of any bullish price action pattern.

The best ones are inverted head and shoulders, double & triple bottom, ascending triangle and cup & handle.

Neckline breakout of the pattern will be your signal to buy.

Target will be the closest intraday strong resistance,

stop loss below the lows, entry on a retest.

Signal to Sell

Your sell signal from resistance will be a formation of a bearish price action pattern on that on an hourly.

Here are the best patterns: head and shoulders, double & triple top, descending triangle, inverted cup & handle.

Neckline breakout of the pattern will be your signal to sell.

Target will be the closest intraday strong support,

stop loss above the highs, entry on a retest.

Trade Example

Following these simple rules, we found a trading setup on GBPUSD with my students on a live stream.

Trading in uptrend, GBPUSD tested a key daily support.

Following the rules of our strategy, we started looking for a confirmation signal on 1H chart. The price formed a double bottom pattern. Long trade was opened after a breakout of a neckline, on its retest.

SL was below pattern lows, TP was a the closest strong intraday resistance.

And here is what happened after a couple of hours.

More than 70 pips of profit were made.

Most traders use the wrong entry rules for trading pullbacks.

This strategy is Clean, Simple, Profitable.

It will help you to easily trade pullback on GBPUSD or any other forex pair.