GBP/USD Forex Signal - 7 October 2015

GBP/USD Signals Update

Yesterday’s signals were never triggered and expired.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be made 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

We have seen some bullishness over the last couple of days as the USD is out of favour. We are still caught between the major key levels, but as we threaten to rise above the psychologically key 1.5250 level, we start to get into a potentially fairly wide zone of resistance that stretches all the way up to 1.5336, at which there should be major resistance. Therefore if the price continues to rise during the London session be aware that a bearish reversal is very possible up there.

GBPUSD

There are no high-impact releases due today concerning the USD. Regarding the GBP, there will be a release of Manufacturing Production data at 9:30am 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.