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GBP/USD Forex Signal - 8 December 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 signals expired without being triggered, as the price did not reach either 1.5591 or 1.5789 during that day’s London session.

Today’s GBP/USD Signals

  • Risk 0.75%

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

 

Short Trade 1

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.5594.

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

  • Adjust the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to rude.

 

Long Trade 1

  • Go long following bullish price action on the H1 time frame immediately following the next touch of 1.5500.

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

  • Adjust the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.

GBP/USD Analysis

The USD came back quite strongly at the end of last week, and all the major USD pairs made new long-term highs. This pair was no exception. Following the NFP last Friday, we broke the support at 1.5591 and it now looks like a return to 1.5594 could be the impetus for a continued move down, if we return there today.

Below, there is likely support at 1.5500 which should be a key psychological number, but this level should be treated with extra care.

The overall picture looks bearish.

GBPUSD 12814

There are no high-impact data releases scheduled today directly concerning either the GBP or the USD. 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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