GBP/USD Forex Signal - 7 March 2018

Wednesday, 7 March 2018 8:19

Yesterday’s signals may have produced a profitable long trade following the bullish doji break on a bounce at the support level identified at 1.3824. It might be wise to exit with profit, as the Pound looks relatively weak.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken before 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 1.3940.

  • 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 Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3872 or 1.3824.

  • 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 was incorrect yesterday to take a cautious bearish bias. I thought that the price was weighing heavily on the support level at 1.3824 with a breakdown looking likely, but the price held and continued to advance, printing a new higher support level at 1.3872. Although this is in line with a long-term bullish trend, I do not feel very bullish here, as the advances in the Pound look weak compared to the Euro and the Yen. For that reason, I just can’t say I have a bullish bias, as I think any recovery in the U.S. Dollar would be likely to send the price of this pair falling more strongly than it is currently rising in a bullish condition.GBPUSD

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3:30pm.

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.

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