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GBP/USD Forex Signal - 20 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 expired without being triggered as there was no bullish price action.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered between 8am and 5pm London time today only.

Protect any open trade by 6:30pm London time.

 

Long Trade 1

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

  • Put 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 price reaches 1.5490 and leave the remainder of the position to run.

 

Long Trade 2

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5300.

  • Put 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 price reaches 1.5390 and leave the remainder of the position to run.

 

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5522.

  • 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.

  • Take off 50% of the position as profit when the price reaches 1.5450 and leave the remainder of the position to ride.

 

Short Trade 2

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

  • 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.

  • Take off 50% of the position as profit when the price reaches 1.5530 and leave the remainder of the position to ride.

GBP/USD Analysis

We saw a fairly strong rise in the USD yesterday across the board. This pair was no exception but it is notable that if that position reverses, this pair could be the major bullish beneficiary.

Nevertheless we have seen formerly supportive levels flipped to resistance, and the level immediately above has been tested already and is holding so far. The chart shows it all below: evenly spaced levels both above and below giving high-probability reversal levels.

GBPUSD 52015

There are high-impact news releases scheduled today concerning both the USD and the GBP. Concerning the GBP, there will be a release of the MPC Monetary Policy Committee Bank Rate Votes at 9:30am London time. Regarding the USD, there will be a release of U.S. FOMC Meeting Minutes at 7pm London time.

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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