GBP/USD Signal - March 10, 2014

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By: DailyForex.com

 

GBP/USD Signal Update

Last Thursday’s signals expired without being triggered.

Today’s GBP/USD Signal

Risk 0.50%.

Entries may only be made between 8am and 5pm London time today.

Short Trade

Enter short with a limit sell order on the first touch of 1.6884.

Place the stop loss at 1.6910.

Move the stop loss to break even when the trade is 30 pips in profit. Take 75% of the position as profit at 1.6785 and let the remainder of the position ride.

Long Trade

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

Place the stop loss at 1.6585.

Move the stop loss to break even when the trade is 30 pips in profit. Take 75% of the position as profit at 1.6675 and let the remainder of the position ride.

GBP/USD Analysis

The GBP has been one of the most reliably strong currencies over the past several months, but right now the bullish focus has shifted to the Euro and this pair is stalling in nowhere land: to be more precise, between the support level at 1.6620 and last month’s high at 1.6821. The fact that we have been unable to beat that high yet over the past 3 weeks is a bearish sign and suggests that the upwards trend may be stalling. However the long-term technical bias does remain bullish, as a candlestick analysis of the higher time frames shows. The monthly candle is bullish, but the weekly and daily candles are significantly less so. Overall, the candles suggest more bullishness to come.

As it likely to be a slow day and we have not hit 1.6620 for over one week, I am looking for a long touch trade at this level if should fall down there during today’s London session. Conversely, we are also a long way from the next likely resistant level at 1.6884, so for the same reasons, I am looking for a short touch trade there. It is very confluent with today’s R3 daily GMT pivot point.

GBPUSD Signal 31014

There are no important data releases scheduled today concerning either the USD or the EUR, so it is likely to be a quiet day for this pair.

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.