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GBP/USD Forex Signal - 13 April 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

Last Wednesday’s signal expired without being triggered as the price never reached 1.4981.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may be made only before 5pm London time today.

 

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4683.

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

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

  • Remove 50% of the position as profit when the price reaches 1.4610 and leave the remainder of the position to ride.

GBP/USD Analysis

This pair is being dragged down and fell quite strongly at the end of last week. This was due partially to a renewed strengthening of the USD but more due to weakness in the GBP, fuelled by opinion polls showing the forthcoming British election is going to end with not only an inconclusive result, but a result that will leave the parties practically unable to form any conceivable government. The pro-secession Scottish Nationalist Party is expected to do very well and this may also cast renewed doubt over the continued survival of the U.K. in its current form as a strong if minor world power.

The price is currently quite a long way from any key levels, the closest is former support likely to flip to resistance at 1.4683 above. There are no obvious support levels below before 1.4450 but of course 1.4500 might prove to be psychologically significant.

GBPUSD 41315

There are no high-impact events scheduled later today concerning either the GBP or 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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