GBP/USD Forex Signal - 28 February 2018

Wednesday, 28 February 2018 7:01

Yesterday’s signals were not triggered, as there was no bullish price action at 1.3914.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm London time today only.

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3940.

  • 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.

Long Trade

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of the descending trend line shown in the price chart below which is currently sitting at about 1.3840.

  • 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.

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

Yesterday I noted that the Pound was looking less bullish than the Euro, with the line of least resistance still seeming by a small margin to be upwards. In the end, the Euro fell much further than the Pound, which is still trying to hold up and refusing to fall much further, but there is new lower resistance at 1.3940 as well as evidence of selling off from 1.4000. Due to this resilience I think a bounce from the broken upper channel trend line could produce a profitable long trade. I am not bullish on this pair, but the Pound does seem to have much more strength than the Euro. However, it looks more likely to move down than up over the next few hours.GBPUSD

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.

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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