GBP/USD Forex Signal - 20 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 must be taken before 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 Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3997 or 1.3879.

  • 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

I had a bullish bias yesterday, noting that the British Pound was holding up against the USD much better than the Euro was, which was a bullish sign. A break up above 1.4000 looked possible, and as there was no resistance beyond that until 1.4168, such a bullish move could be strong if it comes. This approach worked out well as the price broke up and made new highs above 1.4000 upon the announcement of a transitional deal between the E.U. and the U.K. on Brexit, which was seen by the market as positive for the Pound. This was a news “accident” but such accidents tend to happen in line with the trend, and the trend here was bullish. The price has managed to remain above 1.4000 which is a bullish sign, and we may expect that area to be supportive now if retested from above. There is a long-term bullish trend, so I see no reason not to have a bullish bias on this pair again today. There is no key resistance until 1.4168 so the price has plenty of room to rise further without meeting any obvious obstacles.GBPUSD

There is nothing due today concerning either the USD. Regarding the GBP, there will be a release of CPI data at 9:30am London time.

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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.