GBP/USD Forex Signal - 8 March 2018

Yesterday’s signals were not triggered, as there was no bullish price action when the price reached 1.3872.

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 1H1 time frame H1H1H1 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3856 or 1.3824.

  • 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 noted that the price was advancing here, but I just could not take a fully bullish bias as the Pound seems to have too much inherent weakness and looked ready to fall against a U.S. Dollar recovery. However, the price has held up surprisingly well, not as strongly as in the EUR/USD, but this pair is looking increasingly bullish. There is no news due to either currency today, so the consolidation is quite likely to continue, but if the price can break up above the resistance at 1.3940, it should be a sign that the bulls are in charge. I have no directional bias for now.

GBPUSD

There is nothing due today concerning either the GBP or the USD.

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.