The Power of GBP indicator for Metatrader 4 measures the relative strength of the British Pound currency in real-time.
When the relative strength of the GBP currency is strong, trade it against a weak currency.
For instance, when the British Pound is strong and the U.S. Dollar is weak, buy the currency pair (GBP/USD).
Vice versa, when the relative strength of the GBP currency is weak, trade it against a strong currency.
For instance, when the British Pound is weak and the U.S. Dollar is strong, sell the currency pair (GBP/USD).
- The British Pound is considered strong when its relative strength is trading above the 0.00 level.
- The British Pound is considered weak when its relative strength is trading below the 0.00 level.
Key Points
- Power of GBP above the 0.00 level is considered strong. Trade against a weak currency.
- Power of GBP below the 0.00 level is considered weak. Trade against a strong currency.
- Confirm the buy or sell trade entry with other analysis tools.
- Works for any Forex pair with the British Pound currency included.
Free Download
Download the “Power_of_GBP.ex4” Metatrader 4 indicator
Indicator Chart (GBP/USD D1)
The GBP/USD Daily chart below displays the Power of GBP Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Power of GBP Forex MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade as soon as the Power of GBP relative strength crosses the 0.00 level upwards and the counter currency is weak.
Place a stop loss 5 pips below support or apply your own favorite stop loss strategy for buy signals.
Close the buy trade for a reward/risk ratio of 2.5 or better, or apply your own favorite take profit strategy.
Sell Signal: Open a sell trade as soon as the Power of GBP relative strength crosses the 0.00 level downwards and the counter currency is strong.
Place a stop loss 5 pips above resistance or apply your own favorite stop loss strategy for sell signals.
Close the sell trade for a reward/risk ratio of 2.5 or better, or apply your own favorite take profit strategy.
Forex Day Trading Strategy for The GBP Currency Using 2 Indicators
This strategy combines the Power of GBP British Pound Indicator for MT4 with the Four Time Frames ASCTrend Indicator for MT4 to capture strong directional movements in GBP pairs during high-volatility market hours.
The Power of GBP tool measures the real-time strength of the British Pound across multiple pairs, while the ASCTrend indicator confirms multi-timeframe trend direction for precise entries.
Power of GBP Indicator: A buy setup forms when the GBP strength line crosses above the 0.00 level and the counter currency (USD, JPY, or EUR) is weak.
A sell setup occurs when the line crosses below 0.00 and the counter currency is strong.
Four Time Frames ASCTrend Indicator: When all four histograms turn blue, it confirms a strong buy trend; when all turn red, it confirms a strong sell trend.
Day Trading Strategy Rules
Buy Setup
- Wait for the Power of GBP indicator to cross above the 0.00 level, signaling GBP strength.
- Check the Four Time Frames ASCTrend indicator — all four histograms should be blue.
- Confirm that the price is trending upward on the M15 and H1 charts.
- Open a buy trade at the start of the next candle.
- Place your stop loss 25 pips below the nearest swing low.
- Target 40–70 pips depending on volatility, or use a 1.5–2.0 risk-reward ratio.
Sell Setup
- Wait for the Power of GBP indicator to cross below the 0.00 level, showing GBP weakness.
- Check the ASCTrend histograms — all four should be red.
- Confirm a bearish trend on both M15 and H1 charts.
- Enter a sell trade at the start of the next candle.
- Place your stop loss 25 pips above the recent swing high.
- Set your take profit at 40–70 pips or use a trailing stop after +40 pips gain.
Case Studies
Case 1: GBP/USD Morning Breakout
In a Tuesday London session, the Power of GBP crossed above the 0.00 level while USD was weak.
All four ASCTrend histograms turned blue, confirming a buy signal.
A buy entry at 1.2630 reached a target of 1.2690 (+60 pips) within two hours before a retracement started.
Case 2: GBP/JPY Late Session Pullback
Later that day, GBP/JPY showed a bearish crossover on the Power of GBP while JPY was strong.
The ASCTrend histograms are aligned in red.
A short at 191.80 dropped to 191.20 (+60 pips) by the end of the London session.
Advantages
- Combines currency strength (Power of GBP) with multi-timeframe trend confirmation (ASCTrend), increasing trade reliability.
- Works well on multiple GBP pairs like GBP/USD, GBP/JPY, and EUR/GBP.
- Helps traders follow the trend while reducing false entries during minor pullbacks.
- Suitable for day trading, providing structured setups for disciplined scalps and intraday trades.
Drawbacks
- The system can produce false signals during overlapping sessions with conflicting strength readings.
- Trend exhaustion may cause the ASCTrend histograms to lag slightly on reversals.
- GBP pairs are volatile — sudden spikes may hit tight stop losses.
- Requires discipline to avoid trades when both indicators are not aligned.
Strategy Tips
- Focus on London and New York sessions — GBP pairs move best during these hours.
- Always check for major news events (like UK CPI or BoE rate decisions) to avoid false spikes.
- Use the M5 and M15 charts for precise timing; confirm direction on H1.
- Combine the Power of GBP with correlated pairs such as EUR/GBP or GBP/JPY to spot divergence opportunities.
- Trail your stop loss once you secure 30+ pips profit to lock in gains.
Download Now
Download the “Power_of_GBP.ex4” MT4 indicator
Adjustable Parameters & Settings
Colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Recommended Currency pairs: Any
Trading Platform: MT4
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Currency strength
