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GBP/USD Forex signal May 21, 2015 - 21 May 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 gave a short trade off an hourly pin bar rejecting resistance at 1.5522 which unfortunately failed.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trade 1

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5521.

• Place 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 price reaches 1.5490 and leave the remainder of the position to ride.

Long Trade 2

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5396.

• Place 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 price reaches 1.5390 and leave the remainder of the position to ride.

Short Trade 1

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5630.

• Place 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 price reaches 1.5530 and leave the remainder of the position to ride.

GBP/USD Analysis

This pair did not move much yesterday but it seems that former resistance at around 1.5521 may now have turned into support which would be a bullish sign. A bullish bounce off that level early in the London session could see the start of a move up. Yesterday’s FOMC had little impact anywhere. If the USD starts to weaken significantly again, this pair is probably going to be the best place to trade that – long, or course. Note there is plenty of news due today for both currencies.

GBP/USD Analysis

There are high-impact news releases scheduled today concerning both the USD and the GBP. Concerning the GBP, there will be a release of Retail Sales data at 9:30am London time. Regarding the USD, there will be a release of U.S. Unemployment Claims data at 1:30pm, followed by the Philly Fed Manufacturing Index at 3pm.

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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