GBP/USD Forex Signal - 21 March 2018

Adam Lemon

Yesterday’s signals were not triggered, as the bullish price action took place below 1.3997.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may be entered between 8am and 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 1.4168.

  • 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 Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3983 or 1.3879.

  • 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

I had a bullish bias again yesterday, noting that the British Pound might rise all the way to 1.4168 without encountering any resistant obstacles. In fact, the price ended up by falling, but significantly less heavily than in other USD currency pairs, showing that the British Pound has relative strength. This, coupled with the facts that there is still a healthy long-term bullish trend, and that the support now a little lower at about 1.3983 has continued to hold, suggests that a bullish bias remains appropriate. Over the next few hours, the British AEI data release is likely to dominate the price action, which will probably then settle down until the FOMC release due later, which could push the price anywhere.

GBPUSD

Concerning the GBP, there will be a release of Average Earnings Index data at 9:30am London time. Regarding the USD, there will be a release of Crude Oil Inventories at 2:30pm, followed by the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm, followed later by the usual press conference.

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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