GBP/USD Forex Signal - 5 March 2018

Last Thursday’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 Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3818 or 1.3940.

  • 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 Trade

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3657.

  • 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

Last Thursday I had a bearish bias. I thought that this pair looked likely to fall further with the Pound seeming weaker than the Euro. In fact, although the price fell a little it eventually recovered somewhat, getting very close to a resistance level at 1.3818 before turning clearly bearish and beginning to fall again now. There is no reason not to maintain a bearish bias. The Euro still looks relatively stronger than the Pound. This pair remains attractive to trade as it gets so much attention from the market and is moving with a lot of volatility, giving opportunities for profit. It looks likely to fall further today, but there is major news for both currencies which might push the price in an unexpected direction.

GBPUSD
Concerning the GBP, there will be a release of Services PMI data at 9:30am London time. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.

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.