GBP/USD Forex Signal - 8 October 2015

GBP/USD Signals Update

Yesterday’s signals were not triggered as the price only hit 1.5337 after London closed.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be taken between 8am and 5pm London time today.

 

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5244.

  • Put the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.

 

Short Trade 1

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

  • Put the stop loss 1 pip above the local swing high.

  • Move 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.

 

Short Trade 2

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5485.

  • Put the stop loss 1 pip above the local swing high.

  • Move 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.

GBP/USD Analysis

We have lots of very big news today due for both sides of this pair so the action is likely to be choppy until Noon London time and then volatile after that. Overall, the picture looks bullish, although the price did reverse yesterday almost to the pip of what was forecast as probable resistance at 1.5337. Trades should be protected before the big announcements.

GBPUSD

Concerning the GBP, there will be a release today of the MPC Official Bank Rate Votes, Monetary Policy Summary and the Official Bank Rate at Noon London time. Later, at 7pm, the Governor of the Bank of England will be speaking. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm, followed by the FOMC Meeting Minutes at 7pm. It will be a very busy day for this pair.

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.