GBP/USD Forex Signal - 24 May 2016

GBP/USD Signals Update

Yesterday’s signals might have been triggered, as there was a reversal at the resistance level I identified practically to the pip, at 1.4580. However the hourly candle rejecting that level was very long so most traders would probably have refrained from taking it. In any case, it gave at least the minimum 25 pips of profit if taken.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken between 8am to 5pm London times only.

 

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4442 or 1.4414.

  • 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

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4580 or 1.4581.

  • Put 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

This pair swung up and down yesterday, and seems to have begun a period of consolidation. The price has printed narrowing support and resistance and at the time of writing is sitting right in the middle of its natural range. This suggests that trading rejections of key levels could be a good move, but it could be that the price doesn’t really go anywhere.

GBPUSD

Concerning the GBP, there will be Inflation Report Hearings at Noon London time. There is nothing due regarding 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.