Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

GBP/USD Signal- May 20, 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 may be made only between 8am and 5pm London time today.

Long Trade 1

Long entry after confirming bullish price action on the H1 chart following the first touch of 1.6748.

Put a stop loss 1 pip below the local swing low.

Adjust the stop loss to break even when the price reaches 1.6775.

Take off 25% of the position as profit at 1.6800 and leave the remainder of the position to run.

Short Trade 1

Short entry after confirming bearish price action on the H1 chart following the first touch of 1.6864.

Put a stop loss 1 pip above the local swing high.

Adjust the stop loss to break even when the price reaches 1.6840.

Take off 50% of the position as profit at 1.6800 and the remainder at 1.6755.

GBP/USD Analysis

As expected, yesterday was a quiet day and the action is elsewhere at the moment. Nothing new has happened and we should still be expecting the upwards trend to continue following last week’s bounce up off the long-term trend line. As can be seen from the chart below, we may now be experiencing a short-term bounce short off a retest of the broken inner trend line.

Nevertheless, we have not reached either of the interesting levels above or below us yet, so the true action which is coming next remains to be seen.

The support at 1.6748 is now very confluent with the long-term bullish trend line and should act as excellent support. Above us there is a level at 1.6864 which should be treated more conservatively, but which could still be good for a short.

GBPUSD Signal 52014

There are no high-impact news releases scheduled today concerning the USD. At 9:30am London time there will be a release of U.K. CPI data, which may affect the GBP.

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.

 

Most Visited Forex Broker Reviews