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GBP/USD Forex Signal - 3 November 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

No signals have been given recently.

Today’s GBP/USD Signals

  • Risk 0.75%

  • Trades may only be made between 8am and 5pm London time.

Long Trade

  • Go long following bullish price action on the H1 time frame immediately following the next touch of 1.5900.

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

  • Adjust the stop loss to break even once 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.

GBP/USD Analysis

This pair has been chopping around between 1.6000 and 1.6200 without really coming close to any interesting levels for some time now. However the pair is beginning to get interesting as it comes within sight of a supportive level at 1.5900. We may have already made today’s low as the price is rising fairly steadily at the time of writing, but 1.5900 remains interesting as it has been very close to daily highs and lows and seems to have flipped over from resistance into support. This is not very visible on the H4 chart.

The zone is a little flexible and slippery so it should still be valid even if violated to the downside.

There is a triple top at 1.6200 which will probably provide some resistance under normal market conditions, but should be broken quite easily when there is momentum. The real test will be of the flipped level at 1.6275, which is likely to prove resistant.

GBPUSD 11314

At 9:30am there will be a release of U.K. Manufacturing PMI data. Later at 3pm there will be a release of U.S. ISM Manufacturing data. It is likely to be a fairly day for this pair as there will be high-impact news releases likely to affect both its component currencies.

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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