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GBP/USD Signal- April 7, 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

Last Thursday’s signals were not triggered and expired as although the price did reach 1.6596 that day, there was no confirmatory bullish price action.

Today’s GBP/USD Signals

Risk 0.75%

Entries must be made between 8am and 5pm London time only.

Long Trade 1

Buy if confirmed by H1 price action at the bullish trend line currently sitting at 1.6547.

Place the stop loss 1 pip below the local swing low.

Adjust the stop loss to break even when the price reaches 1.6670.

Take off 50% of the position as profit at 1.6670 and leave the remainder to run.

GBP/USD Analysis

Recently we have had a very smooth and symmetrical move up after a prolonged bounce along the major bullish trend line which has held this pair for a number of months. However we have then had a move down over the past few days, during which we have even seen recent support flip to resistance at a round number just above us at 1.6600. Not far below us at 1.6656 there is a major support level and just a few pips below that the bullish trend line.

Although it is likely to be a quiet day and we have a resistance round number above as plus recent bearish action, I am only looking for a long today at a rejection of the bullish trend line that is confirmed by bullish price action on the H1 chart.

GBPUSD Signal

There is no high-impact news due today concerning either the GBP or the USD. It is likely to be a very quiet day.

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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