GBP/USD Forex Signal - 10 May 2016

GBP/USD Signals Update

Yesterday’s signals produced a profitable long trade following the bullish bounce off the trend line shortly after London opened yesterday.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be opened between 8am and 5pm London time today.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4285 or 1.4241.

  • Place the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

 

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4462, 1.4520 or 1.4571.

  • Place 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.

  • Take off 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

Although the overall environment is quite bearish, the supportive trend line which I had highlighted in yesterday’s commentary did give an initial bullish reaction, and has continued to hold the price, although probably not very convincingly. The price action has been more suggestive of a break below the trend line than any other outcome. However in the absence of any major news today we might well just consolidate close to the trend line.

GBPUSD

There are no high-impact events due today concerning either the GBP or the USD.

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.