GBP/USD Forex Signal - 3 May 2016

GBP/USD Signals Update

Yesterday’s signals were not triggered as there was no suitable price action at 1.4650 or 1.4694.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

 

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4650.

  • 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 1.4694 or 1.4798.

  • 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

This pair continues to be firmly bullish, not as much as its sister pair EUR/USD but definitely bullish. We have seen, at least so far, the flipping of the former resistance at 1.4650 to become support, and a return to that price could produce a launching pad for a long entry. Of course there is the resistance level at 1.6494 very close by as at the time of writing. This might hold but the price action this morning suggests it is more likely to break.

GBPUSD

Regarding the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. There is nothing due today concerning 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.