GBP/USD Forex Signal - 11 April 2016

GBP/USD Signals Update

Last Thursday’s signals were not triggered as the bounce at 1.4056 took several hours to get going. However the resistance levels given have held well and were good predictors of where the price did eventually turn bullish.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken between 8am and 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 1.4057.

  • 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 price reaches 25 pips in profit and leave the remainder of the position to ride.

 

Long Trade 2

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4017.

  • 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 price reaches 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 entry into the zone between 1.4171 and 1.4193.

  • 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 ride.

GBP/USD Analysis

The support at 1.4057 was retested again last week following the first sharp bullish reversal, and the supportive zone held and continues to hold. The bearish trend line that has capped the price during the recent move down has been broken to the upside, suggesting we are now going to get another test of the resistant zone which begins at 1.4171. That could be a good shorting opportunity. The break of the trend line does not look very clear, so it does not yet seem possible to use it to pick an entry.

GBPUSD

Regarding the USD, there will be an announcement by the Federal Reserve at some time today concerning discount rates. There is nothing due concerning the GBP.

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.