GBP/USD Forex Signal - 1 October 2015

GBP/USD Signals Update

Yesterday’s signals expired without being triggered as the price has not reached either of the key levels.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm London time today only.

 

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5078.

  • 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.

  • Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5337.

  • 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.

  • Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.

GBP/USD Analysis

I forecast yesterday that there was now no probable strong support until we got down as low as 1.5078, and indeed this pair continues to fall down towards that number in spite of better than expected UK data yesterday and increasing weakness in the USD. With some poor GBP data today, we should easily reach 1.5078, from where we may see a bounce, but it is worth being very careful as this pair is behaving so bearishly.

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 Unemployment Claims data at 1:30pm, followed by ISM Manufacturing PMI 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.