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GBP/USD Forex Signal- August 19, 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 Signals Update

Yesterday’s signals were not triggered as the price never reached either 1.6623 or the bearish trend line.

Today’s GBP/USD Signals

Risk 0.75%.

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

Long Trade

Long entry following bullish price action on the H1 time frame after the first touch of 1.6623.

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

Adjust the stop loss to break even when the price reaches 1.6650.

Remove 75% of the position as profit at 1.6650 and leave the remainder of the position to run.

Short Trade

Short entry following bearish price action on the H1 time frame after the first touch of the bearish trend line shown on the chart in the 1.6775 area.

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

Adjust the stop loss to break even when the price reaches 1.6710.

Remove 50% of the position as profit at 1.6710 and leave the remainder of the position to run.

GBP/USD Analysis

As expected, yesterday was a very quiet day. There are several important events due today so it is likely the news will drive the price today. Unless the news is very dramatically unexpected, we can expect the bearish trend line and support level at 1.6623 to hold in advance of tomorrow’s FOMC minutes release.

GBPUSD 81914

Concerning the GBP, there is important news due at 9:30am London time: year on year CPI. Regarding the USD, there will be data releases at 1:30pm London time concerning CPI and Building Permits. Therefore it is likely to be a fairly lively day for this pair, especially after the New York session begins.

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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