GBP/USD Forex Signal - 9 January 2017

09 January 2017 9:30:19 AM

By: DailyForex.com

GBP/USD Signal Update

Last Thursday’s signals were not triggered as the price action was not sufficiently bullish at 1.2271, although the level did act as good support that day.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2150 or 1.2100.

  • Put the stop loss 1 pip below the local swing low.

  • 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

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2212 or 1.2247.

  • Put 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

I was writing last week about how even though the market was moving against the U.S. Dollar, the move was most restrained here in this pair, which pointed to it being a good bearish vehicle for the moment when the USD started to strengthen again. This is what has been happening in recent days, but the drop has been given extra strength by political events in the U.K. over the weekend. In the debate over the terms that the British government is going to seek over Brexit, the British Prime Minister is now signalling that Britain will leave the provisions of the single market as well as formally leaving the European Union. This can be expected to have a negative effect upon the British Pound and looks to have done so already, so I maintain a bearish outlook on this pair for both technical and sentimental reasons.

Technically, note that the price is currently making a new 2-month low.GBPUSD

There is nothing due today regarding either the GBP or the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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