GBP/USD Signal- Nov. 28, 2013

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By: DailyForex.com

Yesterday's signal was given as follows:

Risk 0.50%
Enter short at 1.6250 if this price is reached between 08:00 and 11:00 London time today.
Stop loss at 1.6314.
Move stop loss to break even at 1.6150.
Take profit on half of the position at 1.6100.

The entry price was hit after the GBP news release at 09:30 London time. Initially the price fell, but as the market digested the details of the release the price rallied very bullishly, triggering the entry. It continued to rise, finding some resistance at 1.6300, but continued to hit the stop loss before the New York session opened. The final result was a loss of 0.50%.

GBP/USD Analysis

It is a US public holiday today so the US pairs in particular and the market in general are likely to be quiet today.

No signal is given today.

The chart below shows key S/R levels and a bullish trend line. There is a 2-year high overhead at 1.6379 which may prove to be strong resistance. The closest obvious support is the bullish trend line, but a return to 1.6250 before that might provide bullish impetus.

The price action is currently suggestive of a local bearish double top at about 1.6315. However the trend is strong and healthy and has just made a significant new high.

It is recommended that any trades taken today are entered fairly early in the London session, as the market should quieten down when London goes to lunch, due to the public holiday in the USA.

GBPUSD signal 112813

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.