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GBP/USD Forex Signal - 6 October 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

Last Thursday’s signal expired without being triggered.

Today’s GBP/USD Signals

  • Risk 0.75%

  • Entries must be taken before 5pm London time only.

Short Trade

  • Short entry following bearish price action on the H1 time frame following a first touch of 1.6067.

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

  • Move the stop loss to break even when the trade is 30 pips in profit.

  • Remove 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to run. Ensure all the risk is taken off the trade.

GBP/USD Analysis

This pair fell steadily even before the NFP data was released on Friday, which drove the price down dramatically to new yearly lows. The GBP had been showing a little strength but has now become one of the weakest currencies against the USD.

There had been a flipped support level above us at 1.6067 which is likely to be resistance if we manage to get up there today, although that is unlikely as the indications show that today should be quiet.

There is likely flipped resistance to support below us confluent with the round number at 1.5900. However due to the strongly bearish nature of the market I would not look for a long trade there, but be aware of it as possible support for profit-taking etc.

GBPUSD 10614

There are no high-impact data releases scheduled for today which are likely to directly affect either the EUR or the USD. Therefore it is likely to be a quiet 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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