GBP/USD Forex Signal - 2 June 2016

GBP/USD Signals Update

Yesterday’s signals were not triggered as there was no bullish price action at either 1.4441 or 1.4414.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

 

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.

  • 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 Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4547 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

I wrote yesterday that as the daily candle was very convincingly bearish, it looked as if this pair had further to fall and this was the case. The price has recovered somewhat but has broken through identified support levels which can be deleted with the exception of 1.4441 which might now act as resistance although I would not look to be relying upon that.

A pullback into the area of 1.4450 to 1.4500 would not be a surprise. As there is major news due later for both sides of this pair, the price is likely to be pushed around by those events somewhat unpredictably.

For the longer-term, much will depend upon the contents of any polls on Britain’s European Union membership.

GBPUSD

Concerning the GBP, at 9:30am London time there will be a release of Construction PMI, followed by a speech from the Governor of the Bank of England at 2pm. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm, followed by Unemployment Claims data at 1:30pm and Crude Oil Inventories at 4pm.

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.