GBP/USD Forex Signal For February 29, 2016

GBP/USD Signals Update

Last Thursday’s signals expired without being triggered as the price stopped rising just a few pips short of the first anticipated resistance level of 1.4000.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3950.

* Put 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.

Short Trade 2

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4041.

* Put 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.

GBP/USD Analysis

This pair again made a new 7 year low on Friday and the 20 year low at around 1.3500 is not so very far away from the current price. This is something to think about as on the one hand the British Pound has tended to trade within a certain range against the USD for a very long time and we are definitely close to the low edge of that band. On the other hand, when a currency pair is moving so strongly as to be making multi-year record prices and is backed by sentiment and macro as the fall in the British Pound is, the odds are in going with the flow.

It appears this pair has found some support at 1.3850 and will probably get at least a little higher during early London trading. There should be good resistance between 1.3920 and 1.3950 which could give a good shorting opportunity if the move up stalls there.