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GBP/USD Forex Signal - 4 November 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 were not triggered as the bullish price action only took place below the anticipated support at 1.5381.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be made between 8am and 5pm London time today.

 

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5364.

  • 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.

  • Remove 50% of the position as profit when the trade is 25 pips in profit 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 1.5500.

  • 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.

  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

 

Short Trade 2

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch 1.5557.

  • 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.

  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

GBP/USD Analysis

I got the support level a little wrong yesterday: it really came in lower than 1.5381, at around 1.5364. This pair is often slippery in that way.

Overall the moves are currently small, although that might change with major news items due today for both currencies. I see the resistance at 1.5500 as probably stronger if hit today than the support at 1.5364.

GBPUSD

Concerning the GBP, there will be a release of Services PMI data at 9:30am London time. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change Number at 1:15pm, followed by Trade Balance data at 1:30pm and then finally ISM Non-Manufacturing PMI and Fed Chair testimony at 3pm.

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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