GBP/USD Forex Signal - 23 August 2016

GBP/USD Signals Update

Yesterday’s signals were not triggered as none of the key levels were reached.

 

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

 

Long Trades

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3082 or 1.3030.

* 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.

 

Short Trades

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.3250 and 1.3268.

* 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

We had another bullish up day yesterday as well as a very bullish late Asian session earlier today. In spite of the long-term bearish trend in this pair, the USD has been falling everywhere and most strongly against the GBP. Therefore, it does not seem like a good time to be trading this in line with the trend, the best possibility here seems to be short-term long pips.

The bullishness is confirmed by the break above the nearest key resistance level of 1.3172. If the price can hold above here during the course of the London session, that would be a very bullish sign that the price is going to 1.3250 next.

Another significant factor is the printing of new support at two levels below.

GBPUSD

There is nothing due today concerning either the GBP or 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.