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GBP/USD Forex Signal - 12 February 2015

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 signals expired without being triggered.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm London time today.

 

Long Trade 1

  • Go long after bullish price action on the H1 time frame immediately following the next touch of the broken bullish trend line shown on the chart below which is currently sitting just above 1.5160.

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

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

  • Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.

 

Long Trade 2

  • Go long after bullish price action on the H1 time frame immediately following the next touch of 1.5096.

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

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

  • Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.

GBP/USD Analysis

I wrote yesterday that it should be a quiet trading day for this pair, and it was. There has been no change to the overall technical picture, with little movement in the price. We have formed a smaller consolidating triangle just above the older, larger one, but this can safely be ignored for now. There should be much more movement today, and the best opportunities are likely to be long entries at the pull backs detailed above.

GBPUSD 21215

There are high-impact data releases scheduled for later today concerning both the GBP and the USD. Therefore it is likely that today will be a volatile day for this pair. At 10:30am London time the Bank of England will release their monthly Inflation Report. Regarding the USD, at 1:30pm there will releases of U.S. data concerning Retail Sales and Unemployment Claims.

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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