GBP/USD Forex Signal - 6 July 2016

GBP/USD Signals Update

Yesterday’s signals were not triggered.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm London time today.

Long Trades

  • No long trades.

 

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000 and 1.3050.

  • 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 ride.

GBP/USD Analysis

Late in the Asian session, this pair was down by 3% over the previous 24 hours. This is a very sharp fall to happen so quickly. The psychological level of 1.3000 has been broken. There are now levels where we can now expect some resistance, at 1.3000 and 1.3050.

The British Pound is in trouble due to the Brexit vote and there is no reason why it will not have further to fall. There is a chance the Brexit might not happen, which means every time there is a political development that makes the U.K.’s eventual departure more likely, we can expect the GBP to fall again.

The governing Conservative Party is choosing a new Prime Minister. The favourite to win actually was a Remain supporter, so it cannot be said this would be driving the Pound down.

While the swings and pullbacks might become very volatile, it would be wise to keep a short only focus here.GBPUSD

There is nothing due concerning the GBP. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time followed by the FOMC Meeting Minutes at 7pm.

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.