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GBP/USD Forex Signal - 12 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 good long trade early in the London session off a bullish bounce from the support identified at 1.5396. This is nicely in profit now and is already protected and is worth hanging onto until 1.5740 or thereabouts.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

 

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5522.

  • 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 1.5140 and leave the remainder of the position to ride.

GBP/USD Analysis

This pair continued to move upwards with strong bullishness, giving a textbook profitable long entry off support yesterday. We have also broken upwards cleanly past anticipated resistance at 1.5550 which is an additional sign of continuing bullishness.

The previous swing high at 1.5522 is now quite likely to have become flipped to another support level, so it should be a good level at which to look for an additional long trade today.

There is no obvious resistance above the key psychological level above at 1.5750 but we are very unlikely to get there today so it is not worth being too concerned with yet.

Progress upwards will probably now get slower and more choppy.

GBPUSD 51215

At 9:30am today London time there will be a release of U.K. Manufacturing Production data.

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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