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GBP/USD Forex Signal - 4 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

Yesterday’s signal expired without being triggered as the price never hit 1.5900.

Today’s GBP/USD Signals

  • Risk 0.75%

  • Trades must be taken before 5pm London time.

 

Long Trade

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

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

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

  • Take off 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 had a quiet day yesterday as the spotlight was fully on the JPY. Nothing interesting happened and that chart did not really change or print any new developments.

Therefore the logical “levels” trade to wait for will still be the possible long trade off likely support at 1.5900.

There may be some minor resistance above at the round number of 1.6100, but there is no major flipped resistance above before 1.6275. Of course, there is a triple top close to 1.6200, so this area should also provide resistance during relatively quiet market conditions, although it should be broken easily if there is sufficient momentum.

GBPUSD 11414

At 9:30am London time today there will be a release of U.K. Construction PMI data, which is likely to have an impact upon the GBP. Later at 1:30pm, there will be a release of U.S. Trade Balance data, which is likely to affect the USD.

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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