GBP/USD Signal- Dec. 2, 2013

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By: DailyForex.com

Risk 0.50%
Entry should be made between 8am and 1pm London time today only.
Enter long at 1.6325.
Stop loss at 1.6290.
Move stop loss to break even and take half the position as profit when the price reaches 1.6375.

GBPUSD H1 12213

GBP/USD Analysis

The pair may move strongly today as there are important events scheduled for both GBP (Manufacturing PMI is released at 9:30am London time) and USD (Bernanke is speaking at 1:30pm London time).

The pair has been in a strong uptrend since early November, dramatically breaking through the key 1.6250 resistance level last week, and making a new 2 year high last Friday, as shown in the 4 hour chart below, marked with key S/R levels and a bullish trend line.

GBPUSD H4 12213

The chart above shows key S/R levels and a bullish trend line.

Although early action this morning has shown a “falling off” from the new high with inside bars, the strong bullish trend and the confluent level at 1.6325 of resistance turned into support and the GMT S1 pivot suggest a long trade off a pull back to this level.

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.
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