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GBP/USD Forex Signal- July 16, 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 Sigal Update

Yesterday’s signal expired without being triggered.

Today’s GBP/USD Signals

• Risk 0.75%.

• Entry may only be made before 5pm London time today.

Long Trade 1

• Go long at the first touch of 1.7048.

• Place a stop loss at 1.6995.

• Move the stop loss to break even when the price reaches 1.7125.

• Take off 75% of the position as profit at 1.7125 and leave the remainder of the position to run.

GBP/USD Analysis

I wrote yesterday that we were likely to fall down to around 1.7050 which might be a likely turning point. We did in fact get to within a few pips of this area just before the first news release of the day, which was very bullish for the GBP and from which price took off, reaching new multi-year highs. However, later USD news pushed the pair down relatively strongly, although it is still holding up just above the daily GMT pivot point at 1.7130.

I do not see any good level at which to get short yet, and as we are some considerable way from the flipped support level at 1.7048, I would be looking to get long today upon a first touch of that level.

GBP/USD

At 9:30am London time there will be a release of UK Claimant Count Change and Unemployment Rate data. Concerning the USD, at 1:30pm there will be a release of US PPI data followed later by the Chair of the Federal Reserve testifying at 3pm. Therefore today is likely to be an active 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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