GBP/USD Forex Signal – 28 March 2018
Yesterday’s signals were not triggered, as there was no bullish price action at 1.4168.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4330.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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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
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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4171 or 1.4089.
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Put the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 25 pips in profit.
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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
Yesterday I took a bullish bias but noted that the price was consolidating just below the psychological level at 1.4250, so there might not be much more of a rise over the short-term. The price fell sharply before recovering equally sharply, and the action still looks bullish, in line with the long-term bullish trend. The U.S. Dollar is weak over the long-term, and nothing is stronger against it now than the Pound. This means that bulls on this pair have good reason to be bullish. The Dollar is moving backwards and forwards strongly whenever any important player talks about a potential tariff war between China and the U.S.A. The Pound also received a boost from developments regarding Brexit and the Irish/U.K. border. Today’s movement is likely to be dominated by the U.S. GDP data due later today, so we can expect more movement during the New York session. I maintain my bullish bias. I have more confidence in the support level at 1.4089 than at 1.4171.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm.
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