GBP/USD Forex Signal - 16 October 2015

GBP/USD Signals Update

Yesterday’s signals narrowly avoided being triggered as the price was not below 1.5450 at 9am London time.

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 1.5381.

  • 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 the trend line shown in the chart below which is currently sitting at around 1.5482.

  • 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 wrote yesterday that if the price could not break through the confluence of a bearish trend line and horizontal resistance at around 1.5500 and falls following the London open, then a retrace back to at least 1.5400 was probable today. This is more or less what happened although the price only fell as far as 1.5415.

The important feature is that we now have an established long-term bearish trend line that has been respected with a second touch happening yesterday. It gives an excellent shorting opportunity.

A long may be possible off 1.5381.

GBPUSD

 There are no high-impact releases due today concerning the GBP. Regarding the USD, there will be a release of Preliminary UoM Consumer Sentiment data at 3pm London time.

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.