GBP/USD Forex Signal - 6 April 2016

GBP/USD Signals Update

Yesterday’s signals were not triggered as there was no bullish price action at the support levels given.

Today’s GBP/USD Signals

Risk 0.50% 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 1.4056.

  • 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 USD strengthened yesterday by a surprisingly large amount and with the GBP being relatively weak, this strengthening had a major impact on this pair, pushing the price down below the supportive zone that I had identified between 1.4193 and 1.4171. It now looks clear that this zone has flipped to resistance and it has already shown signs of acting as such during the Asian session, so any pullback to this area should give a good opportunity to look for a short trade.

It is very unlikely we will reach the next key support at 1.4056 during today’s London session.

Of course the FOMC release due later after London closes can push the price anywhere through any kind of level, so be careful.

GBPUSD

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.

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.