rfxsignals April 4, 2020 No Comments

GBPUSD Trending Price Action Forex Trading Strategy

GBPUSD Trending Price Action Forex Trading Strategy

Every currency pair in Fx has a unique character. GBP is famously known among Forex traders as the most volatile major currency, and normally, most of the GBP Fx pairs are highly volatile, including the most popular one – GBPUSD. As a result, different trading strategies have been created purely based on this volatility of the Pound, a notable example being the London open breakout strategy.

A little bit about GBPUSD

GBPUSD usually exhibits very trending price action that is very specific to this pair only. When a trend starts on “Cable”, the price can travel great distances without much looking back or pausing. Trends are also often thrusting with tall candles followed by tight consolidation. Sometimes retracements are also volatile, with tall candles in the opposite direction of the trend. But, nonetheless GBPUSD trends don’t stop easily, and such retracements don’t last very long before the predominant trend continues and catches momentum traders on the wrong side of the market.

All of the above suggests that we should probably be using a different set of indicators in a slightly different way when trading different currency pairs. For example, chart patterns are often disrupted on GBPUSD due to the volatility. The structures are often in an irregular shape and it is not uncommon for GBPUSD chart patterns to fail miserably.

So trading reversals such as trying to pick top and bottoms can be very tricky and is not the best way to trade this pair. Using trending strategies on GBPUSD, however, tends to work much better. In this article, we’ll focus on this aspect of trading the GBPUSD currency pair.

gbpusd price action forex strategy

GBPUSD Trending Price Action Forex Trading Strategy

GBPUSD 4-hour chart – Once started, trends can often accelerate instead of reversing on the GBPUSD pair

Trading conditions:

Long trade entry:

  • Look for a trend to exist first. Best to confirm this on higher timeframes and then switch to a lower timeframe to look for entry signals. You can check out some of the trend-trading strategies found under the strategies section here which can also be applied on GBPUSD.
  • Look to buy the dips on retracements when bullish signals appear such as the price bouncing at support or a continuation chart pattern appearing.

Long trade stop loss:

  • Place the stop behind support levels in the overall context of the trend.
  • If there is a rising trendline that holds the trend from the start (in many cases there is) then that’s a great place to put a stop behind.
  • Moving averages and Fibonacci retracements also work well in trending markets and are well suited for determining stop loss levels.

Long trade exit and targets:

  • Using a trailing stop is also a good option for trading trends
  • Target important resistance levels and Fibonacci extensions
  • Take profits if a key resistance area has been reached
GBPUSD Fx price action trading strategy

GBPUSD Trending Price Action Forex Trading Strategy

GBPUSD 1-hour chart – Small retracements and bullish continuation are common when GBPUSD uptrends develop. The black rectangle in the middle indicates a retracement of a larger degree also visible on higher timeframes.
Short trade entry:

  • Find a solid trend on the higher timeframes
  • Look for continuation patterns/signals to sell the rallies
  • Enter at solid resistance levels or bearish (continuation) patterns


Short trade stop loss:

  • Place stop loss behind a resistance area.
  • Falling trendlines, moving averages and Fibonacci retracements can also be used to place a stop loss.


Short trade exit and targets:

  • Exit trade if the price crosses above a falling trendline or another indicator that was clearly acting as resistance during the trend
  • Take profits at important support areas
  • Target projections of previous swings and Fibonacci extensions to the downside
Price action trend trading GBPUSD

GBPUSD Trending Price Action Forex Trading Strategy

Cable follows the same script to the downside as well. Large candles take the price lower followed by tight (small) consolidation – GBPUSD 1-hour chart

Some additional guidelines:

Pound sterling is generally an unstable currency for trading due to its volatility. Sharp intra-day reversals happen often. For example, GBPUSD can surge in the morning and then give up all those gains. In the afternoon, it can fall further and at the end of the trading day, close in the red.

Sometimes booking profits early is a smart tactic on GBP pairs for these reasons. Price swings of 100 pips in both directions on the same day is something that can be regularly found on the charts of GBPUSD. This is especially true on big days when the economic calendar is packed with important events.

Horizontal ranges with tall candles and fast-paced price action in both directions can also be seen on this pair. Breakouts can be difficult to trade in such situations as the support and resistance lines of the ranges are rarely clear-cut.

GBPUSD price action Forex

GBPUSD Trending Price Action Forex Trading Strategy

GBPUSD doing its thing – 1-hour chart
On the above chart, notice how the candles inside of the channel are all tall – both green and red. Usually a tall candle is an indication of strong momentum, but unfortunately, on GBPUSD, that signal has proved to be rather ineffective and often misleading. In the middle of the chart, we can see a fake breakout, also a situation that is quite common on GBPUSD.

Generally, all GBP pairs are trending. It’s commonly known that GBPJPY and GBPNZD are one of the most volatile and most trending currency pairs in Fx. Instead of range-trading or top/bottom picking, look to trade powerful trends on GBPUSD such as the ones shown in the first 3 charts. Look for a tall bar followed by small candles (consolidation) and then another tall bar in the direction of the previous one. In such cases, trends on GBPUSD normally last for longer compared to other currency pairs.

The USD is still in demand. Overview for 03.04.2020

The USD is still in demand. Overview for 03.04.2020

03.04.2020

On Friday, EURUSD continues sliding down while investors are interested in “safe haven” assets.

The major currency pair remains under pressure at the end of the first April week. The current quote for the instrument is 1.0813.

Weak numbers from the USA published yesterday didn’t change investors’ attitude to the greenback. On the contrary, the statistics even increased their demand is “safe haven” assets.

So, the weekly report on the Unemployment Claims skyrocketed up to 6.648M after being 3.3M (revised reading) the week before and against market expectations of 3.6M. It means that the great number of unemployed people from the services industry were followed the ones who worked in the manufacturing sector. Of course, the American labor market has enough jobs to quickly recover but it won’t happen right now or any nearest future. The next couple of weeks, while quarantine restrictions remain in effect, will see a lot more people losing their jobs.

The Factory Orders showed 0.0% m/m in February after losing 0.5% m/m in January and against the expected reading of +0.2% m/m. the March report is likely to show -0.1%-0.3% m/m, which would be rather logical due to the shutdown of many enterprises.

Today is a very important day for the American currency. Later in the evening, the USA is scheduled to publish more reports on the labor market. The key ones are the     Non-Farm Employment Change, the Unemployment Rate, and the Average Hourly Earnings.

Murrey Math Lines 03.04.2020 (EURUSD, GBPUSD)

Murrey Math Lines 03.04.2020 (EURUSD, GBPUSD)

03.04.2020

EURUSD, “Euro vs. US Dollar”

In the H4 chart, EURUSD is trading below 1/8. In this case, the pair may continue falling towards the support at -1/8. However, this scenario may no longer be valid if the price breaks 1/8 to the upside. After that, the instrument may continue growing to reach the resistance at 2/8.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

As we can see in the M15 chart, the pair has broken the downside line of the VoltyChannel indicator and, as a result, may continue moving downwards.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD is moving below 3/8. The main scenario implies that the pair is expected to rebound from this level and then resume falling towards the support at 1/8. However, this scenario may no longer be valid if the price breaks 3/8 to the upside. After that, the instrument may continue growing to reach 4/8.

GBPUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue the descending tendency towards the support at 1/8.

GBPUSD_M15
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Japanese Candlesticks Analysis 03.04.2020 (EURUSD, USDJPY, EURGBP)

Japanese Candlesticks Analysis 03.04.2020 (EURUSD, USDJPY, EURGBP)

03.04.2020

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, EURUSD continues forming the rising channel. By now, the pair has formed a Hammer pattern not far from the support level. At the moment, the pair is starting to reverse. We may assume that later the price may grow to reach 1.1030 and continue the ascending tendency. At the same time, there is another scenario, which implies that the price may continue falling towards 1.0757 without reversing and forming any ascending structures.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is still trying to recover after the fall. Right now, the pair is testing the support level, where it has formed several reversal patterns, such as Hammer. Possibly, the price may reverse and reach 110.10. The current situation implies that the instrument may yet resume falling towards 106.60 but this scenario is rather unlikely.

USDJPY
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

EURGBP, “Euro vs. Great Britain Pound”

As we can see in the H4 chart, after reaching another support level, EURGBP has formed a Hammer reversal pattern there. At the moment, the pair started reversing. We may assume that later the market may rebound towards the descending channel’s upside border. If the channel is broken, the upside target may be at 0.9000. However, one shouldn’t exclude an opposite scenario, which implies that the instrument may continue falling towards the channel’s border without any pullbacks. In this case, the downside target may be at 0.8650.

EURGBP
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Forex Technical Analysis & Forecast 03.04.2020

Forex Technical Analysis & Forecast 03.04.2020

03.04.2020

EURUSD, “Euro vs US Dollar”

After completing the second half of the descending wave at 1.0830, EURUSD is consolidating near the lows. Today, the pair may test form one more ascending structure to break 1.0880 and then continue trading upwards with the short-term target at 1.0900.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD continues consolidating around 1.2343 without any particular direction. Possibly, today the pair may fall towards 1.2200 and then grow to return to 1.2343. If later the price breaks this range to the downside, the market may form a new descending structure towards 1.2055; if to the upside – trade upwards with the target at 1.2555 (an alternative scenario to extend the correction) and then resume moving inside the downtrend.

GBPUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDCHF, “US Dollar vs Swiss Franc”

After finishing the ascending structure at 0.9747, USDCHF is consolidating near the highs. Today, the pair may trade downwards to break 0.9700 and then continue the correction with the target at 0.9666.

USDCHF
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDJPY, “US Dollar vs Japanese Yen”

USDJPY has finished the correctional structure at 108.14. The main scenario implies that the price may form a new descending wave to break 107.25. Later, the market may continue trading downwards with the short-term target at 106.25.

USDJPY
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD has broken 0.6066 to the downside. Possibly, today the pair may test this level from below and then continue falling with the short-term target at 0.5918.

AUDUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDRUB, “US Dollar vs Russian Ruble”

USDRUB has completed the descending structure at 77.30. According to the main scenario, the price is expected to break this level to the downside and then continue trading downwards with the short-term target at 75.44.

USDRUB
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is still consolidating above 1.4060. Today, the pair may resume trading downwards with the short-term target 1.3825.

USDCAD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

XAUUSD, “Gold vs US Dollar”

Gold is consolidating above 1605.50. Possibly, today the pair may resume falling to break 1602.32. After that, the instrument may continue trading downwards with the target at 1586.70.

GOLD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

BRENT

After completing the second ascending impulse at 34.06, Brent is correcting with the target at 24.35. Later, the market may start another growth to reach the first target at 35.86.

BRENT
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is forming a new ascending structure towards 7330.00, which may later be followed by another correction to reach 6600.00. After that, the instrument may resume growing towards 7500.00 and then start a new correction with the target at 5600.00.

BITCOIN
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Murrey Math Lines 03.04.2020 (EURUSD, GBPUSD)

Murrey Math Lines 03.04.2020 (EURUSD, GBPUSD)

03.04.2020

EURUSD, “Euro vs. US Dollar”

In the H4 chart, EURUSD is trading below 1/8. In this case, the pair may continue falling towards the support at -1/8. However, this scenario may no longer be valid if the price breaks 1/8 to the upside. After that, the instrument may continue growing to reach the resistance at 2/8.

EURUSD

Murrey Math Lines 03.04.2020 (EURUSD, GBPUSD) rfxsignals

Risk Warning: the result of previous trading operations do not guarantee the same results in the future

As we can see in the M15 chart, the pair has broken the downside line of the VoltyChannel indicator and, as a result, may continue moving downwards.

EURUSD

Murrey Math Lines 03.04.2020 (EURUSD, GBPUSD) rfxsignals

Risk Warning: the result of previous trading operations do not guarantee the same results in the future

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD is moving below 3/8. The main scenario implies that the pair is expected to rebound from this level and then resume falling towards the support at 1/8. However, this scenario may no longer be valid if the price breaks 3/8 to the upside. After that, the instrument may continue growing to reach 4/8.

GBPUSD

Murrey Math Lines 03.04.2020 (EURUSD, GBPUSD) rfxsignals

Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue the descending tendency towards the support at 1/8.

GBPUSD_M15

Murrey Math Lines 03.04.2020 (EURUSD, GBPUSD) rfxsignals

Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Ichimoku Cloud Analysis 03.04.2020 (BTCUSD, XAUUSD, EURUSD)

Ichimoku Cloud Analysis 03.04.2020 (BTCUSD, XAUUSD, EURUSD)

03.04.2020

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is trading at 6750.00; the instrument is moving above Ichimoku Cloud, thus indicating a bullish tendency. The markets could indicate that the price may test the cloud’s upside border at 6555.00 and then resume moving upwards to reach 7445.00. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 6325.00. In this case, the pair may continue falling towards 5825.00.

BTCUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

XAUUSD, “Gold vs US Dollar”

XAUUSD is trading at 1610.00; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1600.00 and then resume moving upwards to reach 1635.00. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 1580.00. In this case, the pair may continue falling towards 1535.00.

GOLD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.0847; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.0895 and then resume moving downwards to reach 1.0705. Another signal to confirm further descending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further decline may be canceled if the price breaks the cloud’s upside border and fixes above 1.0975. In this case, the pair may continue growing towards 1.1065.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The USD is still in demand. Overview for 03.04.2020

The USD is still in demand. Overview for 03.04.2020

03.04.2020

On Friday, EURUSD continues sliding down while investors are interested in “safe haven” assets.

The major currency pair remains under pressure at the end of the first April week. The current quote for the instrument is 1.0813.

Weak numbers from the USA published yesterday didn’t change investors’ attitude to the greenback. On the contrary, the statistics even increased their demand is “safe haven” assets.

So, the weekly report on the Unemployment Claims skyrocketed up to 6.648M after being 3.3M (revised reading) the week before and against market expectations of 3.6M. It means that the great number of unemployed people from the services industry were followed the ones who worked in the manufacturing sector. Of course, the American labor market has enough jobs to quickly recover but it won’t happen right now or any nearest future. The next couple of weeks, while quarantine restrictions remain in effect, will see a lot more people losing their jobs.

The Factory Orders showed 0.0% m/m in February after losing 0.5% m/m in January and against the expected reading of +0.2% m/m. the March report is likely to show -0.1%-0.3% m/m, which would be rather logical due to the shutdown of many enterprises.

Today is a very important day for the American currency. Later in the evening, the USA is scheduled to publish more reports on the labor market. The key ones are the     Non-Farm Employment Change, the Unemployment Rate, and the Average Hourly Earnings.

Fibonacci Retracements Analysis 03.04.2020 (BITCOIN, ETHEREUM)

Fibonacci Retracements Analysis 03.04.2020 (BITCOIN, ETHEREUM)

03.04.2020

BTCUSD, “Bitcoin vs US Dollar”

As we can see in the H4 chart, the correctional uptrend has reached 50.0% The next upside target may be at 61.8% fibo (7987.75) but the divergence on MACD indicates a possible reverse soon. After completing the correction, the instrument may resume falling to break the support – the low at 3929.75.

BTCUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, the convergence on MACD made the pair start a new rising wave. The short-term upside targets may be inside the post-correctional extension area between 138.2% and 161.8% fibo at 7410.00 and 7685.00 respectively. The support is the low at 5851.00.

BITCOIN
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

In the H4 chart, ETHUSD has broken the consolidation range to the upside; right now, it is moving towards 38.2% and 50.0% fibo at 166.13 and 189.40 respectively. The support is the low at 89.80.

ETHEREUM
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows a short-term rising wave towards 38.2% fibo at 166.13.

ETHUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

rfxsignals April 3, 2020 No Comments

DAILY FREE FOREX SIGNALS – 03-04-2020

GBPAUD SELL 2.03860
SL:2.05042
TP1:2.03696
TP2:2.03553

AUDCAD BUY 0.86047
SL:0.85393
TP1:0.86203
TP2:0.86341

AUDJPY BUY 65.594
SL:65.107
TP1:65.744
TP2:65.877

EURCHF BUY 1.05664
SL:1.05449
TP1:1.05811
TP2:1.05967

AUDUSD BUY 0.60773
SL:0.60397
TP1:.060926
TP2:0.61082

NZDJPY BUY 63.860
SL:63.531
TP1:64.017
TP2:64.221

USDCAD BUY 1.41615
SL:1.41323
TP1:1.41775
TP2:1.41953

GBPUSD SELL 1.23737
SL:1.23932
TP1:1.23603
TP2:1.23440

USDCHF SELL 0.97476
SL:0.97267
TP1:0.97633
TP2:0.97753

EURAUD SELL 1.78640
SL:1.80799
TP1:1.78473
TP2:1.78305

USDJPY SELL-107.898
SL-108.412
TP1-107.729
TP2-107.478

GBPUSD SELL-1.23309
SL-1.25696
TP1-1.20733
TP2-1.18503
TP3-1.14545

GBPJPY BUY 133.794
SL:132.417
TP1:133.968
TP2:134.119

CADJPY BUY 76.265
SL:75.072
TP1:76.426
TP2:76.604

USDJPY SELL 108.050
SL:107.011
TP1:108.212
TP2: 108.378

EURJPY SELL 116.828
SL:117.237
TP1:116.683
TP2:116.522

EURNZD SELL 1.83406
SL:1.84868
TP1:1.83231
TP2:1.83017

NZDCAD SELL 0.83199
SL:0.83891
TP1:0.83044
TP2:0.82913

EURCHF SELL 1.05432
SL:1.05799
TP1:1.05293
TP2:1.05162

GBPCAD SELL 1.74253
SL:1.75715
TP1:1.74085
TP2:1.73883

EURJPY SELL 116.985
SL:117.343
TP1:116.843
TP2:116.711

AUDCAD SELL 0.85085
SL:0.86303
TP1:0.84906
TP2:0.84734

AUDUSD SELL 0.59809
SL:0.60903
TP1:0.59636
TP2:0.59478

NZDCAD SELL 0.82869
SL:0.83988
TP1:0.82709
TP2:0.82506

EURGBP BUY 0.88011
SL:0.87278
TP1:0.88164
TP2:0.88338

EURJPY BUY 117.288
SL:116.591
TP1:117.464
TP2:117.640

CHFJPY BUY 111.205
SL:110.505
TP1:111.390
TP2:111.591

CADCHF SELL 0.68763
SL:0.69149
TP1:0.68605
TP2:0.68475

AUDCAD SELL 0.84976
SL:0.86185
TP1:0.84835
TP2:0.84682

EURGBP BUY 0.87943
SL:0.87360
TP1:0.88120
TP2:0.88231

GBPCHF SELL 1.19853
SL:1.20908
TP1:1.19666
TP2:1.19507

NZDJPY SELL 63.492
SL:63.911
TP1:63.341
TP2:63.150