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GBP/USD Forex Signal - 1 September 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.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be made before 5pm London time today at the latest.

 

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5451.

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

  • Adjust the stop loss to break even once the trade is 30 pips in profit.

  • Remove 50% of the position as profit when the price reaches 1.5360 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 the bearish trend line currently sitting at around 1.5480.

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

  • Adjust the stop loss to break even once the trade is 30 pips in profit.

  • Remove 50% of the position as profit when the price reaches 1.5380 and leave the remainder of the position to ride.

 

Short Trade 3

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5533.

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

  • Adjust the stop loss to break even once the trade is 30 pips in profit.

  • Remove 50% of the position as profit when the price reaches 1.5460 and leave the remainder of the position to ride.

GBP/USD Analysis

The pair continued to fall yesterday but formed a local double bottom at 1.5340 which has produced something of a recovery overnight. There is local resistance at the round number of 1.5400 which may hold the price now if there is going to be a further move down and strengthening of the USD. Even if we get above 1.5400, there is resistance above that beginning at 1.5450 that is likely to be strong, so it is hard to see a really meaningful upwards move happening with this pair any time soon.

GBPUSD

Regarding the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. Concerning the USD, there will be a release of ISM Manufacturing PMI data due 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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