GBP/USD Forex Signal - 26 May 2016

GBP/USD Signals Update

Yesterday’s signals were not triggered as although the level at 1.4661 did act as effective resistance for the first few hours following the London Open, there was no sufficiently bearish candle to trigger a short entry.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

 

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4661, 1.4581 or 1.4548.

  • Put 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 1.4799.

  • 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 made another strong upwards move yesterday. This is without doubt the most strongly trending of all the major forex currency pairs, in the bullish direction.

It seems very probably that the previous resistance level at 1.4661 has now flipped to become good support.

There is no obvious resistance before 1.4799 but of course 1.4750 is a key psychological number and that could prove to be a turning point to watch out for if and when the price gets there.

A continued upwards move is more probable that a downwards move today. The round number at 1.4700 may act as minor support.

GBPUSD

Concerning the GBP, there will a Second Estimate of GDP released at 9:30am London time at 3am London time. Regarding the USD, there will be a release of Core Durable Goods Orders and Unemployment Claims data at 1:30pm.

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.