GBP/USD Forex Signal - 14 February 2018

Wednesday, 14 February 2018 8:22

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am and 5pm London time today.

Long Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3657.

  • 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.

  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3993.

  • 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.

  • Remove 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.

GBP/USD Analysis

Everything I wrote yesterday is still applicable today: this pair is recovering less than the EUR/USD. There is still a considerably way to go before the long-term bullish trend can be truly said to be resuming. There are no key levels nearby which makes forecasting probable directional movement difficult. Yesterday’s slightly higher than expected British inflation rate of 3.0% did give the Pound a small boost, but it wasn’t much. The fact that this pair is barely advancing even during a period of U.S. Dollar weakness suggests that it is ultimately more likely to fall than advance, despite the long-term bullish trend. The break of the bearish trend line shown in the price chart below is not likely to mean much. There will probably be better opportunities elsewhere today. I have no directional bias.GBPUSD

There is nothing due today concerning the GBP. Regarding the USD, there will be releases of CPI and Retail Sales data at 1:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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