GBP/USD Signal- Feb. 17, 2014

Adam Lemon

 

GBP/USD Signal Update

Last Thursday’s signals were not triggered and expired.

Today’s GBP/USD Signals

Risk 0.50%.

Entry should be made before 5pm London time today only.

Long Trade 1

Enter long with a limit buy order at a first touch of 1.6620.

Stop loss at 25 pips.

Move the stop loss to break even when the trade is 25 pips in profit and let it run.

GBP/USD Analysis

The end of last week saw the pair make a dramatic parabolic high, which saw new multi-year highs being made. The resistance level of 1.6620 did hold very briefly before the price broke upwards very strongly, therefore I see this level as likely support. I had also expected the key psychological level of 1.6750 to provide some resistance but the price just blew right through this level. Due to the extreme strength of the GBP, I am not looking for any short trades. The nearest strong support will probably be at 1.6620, which is only 12 pips above today’s GMT S2 daily pivot point, and 20 pips above a round number, so there is some confluence there.

Although the situation is very bullish, I am not sure that the Bank of England will be happy to see the GBP this strong, and parabolic rises can be followed by parabolic falls, so we might get a sharp pull back, but I very strongly believe that would not lead to anything else than another rise quite soon afterwards.

GBPUSD Signal 21714

There is no important news due today for the GBP or the USD. As it is also a public holiday in the USA, it is likely to be a very quiet trading day unless there is dramatic and unexpected news.

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.
Learn more from Adam in his free lessons at FX Academy

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.