GBP/USD Forex Signal - 28 January 2016

GBP/USD Signals Update

Yesterday’s signals expired without being triggered.

 

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 1.4205.

* 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 1

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4350.

* 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.

 

GBP/USD Analysis

We finally have a major change to the technical picture: the long-term bearish trend line has been broken and has also failed to hold when retested so the trend line has been deleted from the chart. What we have instead is a short-term bullish trend line that is now forming the lower edge of an ascending triangle, with the resistance level at 1.4350 acting as the upper horizontal of the triangle. At the time of writing we are coming up from a second touch of that ascending trend line. However it might not hold and although it may be the bottom, I could also see a fall to 1.4205 which could give a good opportunity to go long up to another test of 1.4350.

The level at 1.4350 looks like strong resistance so is quite likely to provide another shorting opportunity.

GBPUSD

Regarding the GBP, there will be a release of Preliminary GDP data at 9:30am London time. Concerning the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims data at 1:30pm.

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.