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GBP/USD Signal- May 14, 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.

Today’s GBP/USD Signals

Risk 0.75%

Entries can only be made before 5pm London time today.

Long Trade 1

Go long after confirming bullish price action on the H1 chart following the first touch of the bullish trend line sitting at around 1.6810.

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 after 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

As predicted yesterday, the support zone from 1.6820 to 1.6853 has given some long pips since yesterday’s bounce off of this lower level.

We now have the inner bullish trend line at 1.6810 and if the price spikes down there it could be good for a long.

Below that there is another supportive level at 1.6748.

There is lots of important news due today which should drive the price. If the news items are bullish for the GBP then a move up could be strong and dramatic. If the news is bearish, then it could spike the price down to a cheap buying opportunity. There would have to be an extremely significant change in outlook that could really only come from the inflation report to put a true end to this uptrend, which remains intact by all important indications.

GBPUSD Signal 51414

There are several high-impact news releases scheduled today that are likely to impact the GBP. At 9:30am London time there will be a release of the claimant count change and unemployment rate. One hour later at 10:30 the Governor of the Bank of England will be speaking and the Bank’s inflation report will be released. Later at 1:30pm London time, there will be a release of US PMI data which could affect the USD. It is likely to be a volatile day for this pair.

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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