GBP/USD Forex Signal - 27 February 2018

Tuesday, 27 February 2018 8:04

Yesterday’s signals were not triggered, as there was no bullish price action at 1.3963.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4168.

  • Place the stop loss 1 pip above the local swing high.

  • Move 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 ride.

Long Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3914.

  • Place the stop loss 1 pip below the local swing low.

  • Move 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 ride.

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

This pair was looking bullish yesterday, having room to rise all the way to 1.4168 as I noted. The price initially rose very strongly but then fell right back to the area where it started by the end of the day, in fact even lower, as it broke and invalidated the former support at 1.3963. The Pound now looks less bullish than the Euro, even though there is still support here at 1.3914, and a long-term bullish trend. It is difficult to forecast today’s movement, but the line of least resistance still seems by a small margin to be upwards.GBPUSD

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Core Durable Goods Orders and testimony before Congress by the Chair of the Federal Reserve at 1:30pm London time, followed by CB Consumer Confidence data at 3pm.

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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