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GBP/USD Forex Signal - 22 December 2016

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 Signal Update

Yesterday’s signals were not triggered as none of the key levels were ever reached.

 

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

 

Long Trades

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2312 or 1.2272.

* 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 25 pips in profit and leave the remainder of the position to run.

 

Short Trades

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2419 or 1.2454.

* Place the stop loss 1 pip above the local swing high.

* 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 25 pips in profit and leave the remainder of the position to run.

 

GBP/USD Analysis

This pair had been falling more sharply over recent days, but over the last two days or so has begun to consolidate between 1.2419 and 1.2312.However, there are signs that a move down is more likely than a move up over the short-term, with the price struggling to even reach the round number at 1.2400, so the resistance seems to be casting a shadow up there.

GBPUSD

There is nothing due today regarding the GBP. Concerning the USD, there will be releases of Core Durable Goods Orders, Final GDP and Unemployment Claims data at 1:30pm 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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