GBP/USD Forex Signal - 14 October 2014

GBP/USD Signals Update

Yesterday’s signal was not triggered as the price never reached 1.5900.

Today’s GBP/USD Signals

No signals are given today.

GBP/USD Analysis

I noted yesterday that this pair looked bearish and really needed to break above 1.6105 to turn that around. As it happened, this level did act as local resistance and we have moved down overnight, with the GBP showing weakness across the board. I cannot see any sign that this is going to turn around, although there is local support about 50 pips below at the time I write this, confluent with the major psychological round number at 1.6000, so we might not be able to get below this number today.

Looking at the four hour chart for major flipped support and resistance, unfortunately there is nothing between 1.5900 below us and 1.6280 above us, so I will repeat what I said yesterday: this pair may well just chop around in this area for a while. Despite that, I am move comfortable being short above 1.6000 and to a lesser extent above 1.5900. I expect that we will see 1.6000 hit during today’s London session as we have some bearish engulfing action on the chart right now, although we do have some GBP news which could change that in an instant.

GBPUSD 101414

There are no high-impact data releases concerning the USD scheduled for today. Regarding the GBP, there will be a release of U.K. CPI data at 9:30am London time. The first half of the London session is likely to be active.

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.