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GBP/USD Forex Signal - 21 July 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 the price action was insufficiently bullish at 1.5554, although that level did act as support.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be made 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 1.5673.

• Place 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 1.5610 and leave the remainder of the position to ride.

Long Trade 1

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5554.

• 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 price reaches 1.5610 and leave the remainder of the position to ride.

Long Trade 2

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the broken bearish trend line currently sitting at around 1.5460.

• 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 price reaches 1.5550 and leave the remainder of the position to ride.

GBP/USD Analysis

I wrote yesterday that “trading the range off rejections of either side of the range should be the best strategy”, and so it proved to be. The 1.5554 level was very supportive but the price did not bounce cleanly so it would have been hard to find the best long trade entry except on a very short-term chart. Both of these currencies are strong and no high-impact news is expected today concerning either of them, so a continuation of the range is also probably and my commentary yesterday holds. However there appears to be a slightly greater chance that the price will break down below 1.5554.

GBP/USD Analysis

There is nothing due today regarding 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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