GBP/USD Forex Signal - 1 March 2018

By: DailyForex.com

Yesterday’s signals were not triggered, as there was no bullish price action at 1.3840.

 

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 1.3940.

· 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 1.3657.

· 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

Yesterday I noted that the Pound seemed to have more strength than the Euro, but that a short-term move down was more likely than a move up. There was a move down, but in the final analysis it was strong, with the Pound falling by more against a strong U.S. Dollar than any other currency, breaking easily below any potential support offered by the broken channel trend line which is still shown in the price chart below. The Pound is weak as there is renewed political uncertainty in the U.K. as the E.U. presents a tough negotiating position while a majority of the U.K. political class wishes to see the U.K. effectively remain within the E.U. customs union. This situation looks likely to present extreme difficulties for the British Government and possibly bring it down.

I maintain a bearish bias. This pair looks likely to fall further today and is currently at the heart of the Forex market.

GBPUSD

Concerning the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm, as well as testimony from the Chair of the Federal Reserve before Congress.

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.