GBP/USD Forex Signal

Wednesday, 7 February 2018 8:04

Yesterday’s signals were not triggered, as there was no bullish price action at 1.3917.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be taken 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 1.3807.

  • 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 Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3993, 1.4035, or 1.4090.

  • 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

I wrote yesterday that the next movement seemed hard to forecast, and it was – there was a strong move down to 1.3850, breaking support, and then an equally sharp recovery. At the time of writing, the price is knocking at the door of 1.4000. A sustained break above this level would be a bullish sign, signalling that the long-term bullish trend might be starting to reassert itself, yet there are resistance levels close within the next 90 pip range above, so upwards movement could end suddenly. It is likely that the market will be dominated by USD flows which are strongly affected by very high volatility in the U.S. stock market, so less experienced traders might be wise to stay out of the market for a while.

GBPUSD

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm 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.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now