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GBP/USD Forex Signal - 5 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 was not triggered and expired as the price never reached 1.5900.

Today’s GBP/USD Signals

Risk 0.75%

Trades may only be entered 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 ride.

GBP/USD Analysis

Yesterday was another quiet day for this pair, which did little except for chop around within quite a tight range.

Overnight things have become a little interesting with a sharp downwards move during the Tokyo session, as the USD continues to strengthen.

We are now approaching a local support level at 1.5940 which has held over the past few days. If we break through that and reach 1.5900 it will become a long more interesting as this has been a key pivotal point for a long time.

There is local resistance above at 1.6020 and possibly stronger resistance at 1.6085.

GBPUSD 11514

At 9:30am London time today there will be a release of U.K. Services PMI data, which is likely to have an impact upon the GBP. At 1:15pm there will be a release of U.S. ADP Non-Farm Employment Change data, followed later at 3pm by ISM Non-Manufacturing PMI data, both of which are likely to have a strong impact on 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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