GBP/USD Forex Signal - 31 December 2015

GBP/USD Signals Update

Yesterday’s signals produced a profitable long trade following the bullish engulfing candle rejecting the support at 1.4798.

 

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

 

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4874.

* 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.

* 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

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4950.

* 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.

* Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

 

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.4798 and 1.4785.

* 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.

* Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

 

Long Trade 2

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4691.

* 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.

* 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

The price yesterday rejected the supportive zone I had identified beginning more or less at the round number of 1.4800, although it has been taking its time about moving up since its initial burst which quickly peaked during yesterday’s New York session. The indications are that we are going to get a deeper pull back within the downwards trend, quite possibly all the way up to 1.4874, which might give another good opportunity to go short. I would not be surprised if today turns out to be an up day.GBPUSD

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm 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.