GBP/USD Forex Signal - 13 March 2018

Adam Lemon

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.

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 Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3879 or 1.3822.

  • 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 had a cautious bullish bias and I was correct in that the price did eventually rise to make new highs as the day went on into the New York session. However later the price rise stalled, unsurprisingly, above 1.3900 in an area which has acted as resistance to cap the price lately. The upwards move has printed a new small zone of support from 1.3888 to 1.3879 and this has held so far. If it breaks down, it would be a bearish sign. If it holds into the London open, that will suggest that the price will go on to make new highs later today. There is still a long-term bullish trend in force, but over the medium term the price has ranged up and down in quite wide, tradable swings. There is more focus now on the USD/JPY currency pair, with this pair no longer at the heart of the market, but it is still giving good trade opportunities.

There is major news due today for both currencies, with the British Budget the most likely to produce surprises and major price turbulence.GBPUSD

Concerning the GBP, there will be a release of the Government’s Annual Budget Release at 11:30pm London time. Regarding the USD, there will be a release of CPI data at 12:30pm.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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