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GBP/USD Forex Signal - 9 July 2018

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.

Last Thursday’s signals were not triggered, as none of the key levels were reached on that day.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm London time today, during the next 24-hour period.

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3350.

  • 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.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

GBP/USD Analysis

Last Thursday I had a bullish bias until the New York open which worked out well, as the price did rise but then fell after New York came on line. The picture now is bullish, with the Pound looking as if it has been boosted by the British Government agreeing a very “soft Brexit” as the basis of its final offer to the European Union in negotiations. This suits business interests and so the market is pushing the Pound up so far this morning, invalidating the resistance at 1.3308. There are no obvious support levels anywhere nearby. I have a bullish bias, but the Pound will be vulnerable to political shocks, and it is possible that there may be a rebellion within the governing Conservative Party which will overthrow the government and lead to a new Prime Minister or even a General Election, which could lead to a victory for the left which would probably trigger a crash in the Pound.

GBPUSD

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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