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GBP/USD Signal- Feb. 12, 2014

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

GBP/USD Signal Update

Yesterday’s signals were not triggered and expired. The price did hit 1.6475, which has proved so far to be resistant, but did not give a clear short entry signal.

Today’s GBP/USD Signals

No signals are given today.

GBP/USD Analysis

Yesterday was a fairly quiet day. We hit the resistance level confluent with the broken bullish trend line at 1.6475 towards the end of the London session, after which the price fell. There was another attempt to rise beyond 1.6475 but the level was resistant again during the Asian session and the price has now fallen. As the level has been tested I do not feel it is safe to take another short from there.

There do not appear to be any good support or resistance levels within approximately 200 pips of the current price, so I cannot give any signals today.

Yesterday was a weakly bullish day. I believe today will see a close down, but the action is likely to be choppy and unclear.

Although we have carved out what looks to be a strong bottom below 1.6340, I am not as bullish as Christopher Lewis, and believe we are now seeing the price fall back after meeting the 23.6% Fibonacci level which has acted support before flipping to resistance, at 1.6475.

GBPUSD Signal 21214

There is no important news due today for the USD. Concerning the GBP, the Governor of the Bank of England is speaking today at 10:30am London time. Simultaneously, the Bank of England Inflation Report will be released. It is likely to be an active morning, followed by a quieter New York session, unless there is a surprise from the Bank of England.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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