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GBP/USD Forex Signal - 7 January 2016

By: DailyForex.com

GBP/USD Signals Update

Yesterday’s signals were not triggered as although we did hit 1.4600 the hourly candle wasn’t broken to the upside over the next hour so there was no trade entry given.

 

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 1.4600.

* 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 1.4564.

* 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.

 

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4694.

* 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 1.4750.

* 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

Things are still looking very bearish with this pair overall and we have really been unable to rise, after falling sharply for many days. I did write yesterday that we should beware of the levels at 1.4564 or 1.4600 as places where a halt or turn from the fall is quite possible and there are some initial signs of a possible bottoming out at 1.4600, so it is possible to take a long from a bounce here but be very careful. However, while the EUR was able to rise against the USD late yesterday, the GBP really wasn’t and that suggests the pair probably isn’t going to be able to rally just yet.

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
About 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.

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