GBP/USD Forex Signal – 05 April 2018

By: DailyForex.com

Yesterday’s signals were not triggered, as none of the key levels were reached during the specified period.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm London time today only.

Short Trades

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4097 or 1.4193.

· 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 Trade

· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3983.

· 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 wrote yesterday that although I had no directional bias there, the price would probably struggle to rise further above 1.4091. There is some relative strength in the Pound, but the price did indeed struggle to get above 1.4091, although I had readjusted the resistance level a little higher to be more precise, to about 1.4097, very confluent with the round number at 1.4100. The current short-term price action of the past few hours suggests the price is now falling steadily from the nearest resistance, so the outlook is looking increasingly bearish. I have no directional bias today on this currency pair.

Concerning the GBP, there will be a release of Services PMI data at 9:30am London time. There is nothing due regarding the USD.