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GBP/USD Signal- May 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

Last Thursday’s signals expired without being triggered.

Today’s GBP/USD Signals

Risk 0.50%

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

Long Trade 1

Go long following confirming bullish price action on the H1 chart following the first touch of the bullish trend line sitting at around 1.6790.

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

Move the stop loss to break even when the price reaches 1.6850.

Remove 50% of the position as profit at 1.6850 and leave the remainder of the position to ride.

Long Trade 2

Go long following confirming bullish price action on the H1 chart following the first touch of 1.6748.

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

Move the stop loss to break even when the price reaches 1.6800.

Remove 50% of the position as profit at 1.6800 and leave the remainder of the position to ride.

GBP/USD Analysis

The GBP has been in a strong upwards trend against the USD but was dragged down by the plummeting EUR since last Thursday afternoon. However, I do not see any reason to see the GBP as weakening, it remains the strongest global currency along with the NZD and there is nothing happening to change that yet.

The only key level that was reached occurred towards the end of trading on Friday, since when the price seems to have found some support below at around 1.6850. As mentioned last week, the support here has been pretty flexible so I do not feel comfortable going long here today, but would instead wait for the price to fall further, at least to the inner bullish trend line below.

GBPUSD Signal 51214

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