GBP/USD Forex Signal - 15 May 2017

Last Thursday’s signals produced a profitable long trade following the near-doji candlestick rejecting the support level identified at 1.2850, but only for the minimum 25 pips of profit before it was stopped out.

Today’s GBP/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2900 or 1.2850.
  • Place 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 Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
  • Place 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.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

GBP/USD Analysis

The price fell on Thursday, breaking down past the support at 1.2900, but it was held twice at or very close to the next level below that, at 1.2850. It took a while to fully recover, but now seems to have broken up past the former resistance level at 1.2900, and if it does hold up, should eventually make another attempt at recent highs. Of course, the area just above the long-term high price at 1.3000 can be expected to be strong resistance.

There is a long-term bullish trend, and a short-term bullish outlook. Early trading today has seen more activity here than in the EUR/USD currency pair.GBPUSD

There is nothing scheduled 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.