GBP/USD Signal- March 12, 2014

Adam Lemon

By: DailyForex.com

 

GBP/USD Signal Update

Monday’s buy signal at 1.6620 was stopped out yesterday at the new break even stop loss, so the trade broke even.

Today’s GBP/USD Signal

Long Trade

Put a buy limit order for a long entry at the first touch of 1.6475.

Place the stop loss at 1.6419.

Move the stop loss to break even when the trade is 25 pips in profit and leave the trade to ride.

GBP/USD Analysis

Yesterday printed a fairly small and weak bearish candle. However it was significant that yesterday’s close was below the low of the previous day, and the close was also within the bottom half of the candle. As this downwards move looks impulsive after repeated failures to meaningfully break above 1.6750, things are without doubt starting to look bearish for this pair. A candlestick analysis shows bullishness remaining on the monthly chart but the weekly chart is now starting to look bearish. The daily chart looks bearish already. This is indicative of a move down to the next significant support near the key psychological level of 1.6500.

Despite all that, the support at around 1.6620 has not fully exhausted itself, or so it seems, so we may get a move up next. There is local resistance at around 1.6650 which could be a good price at which to look for a short entry, although I am not giving this as a signal.

The coming action is likely to be fairly choppy as we have leftover buying orders below and a selling zone at 1.6650 so me may just bounce around in this sort of zone for a while, which would make the pair less interesting to trade for a while.

We are still well within a wide, long-term bullish channel, in spite of the bearish candlestick indications.

GBPUSD Signal 31214

There are no important data releases scheduled today concerning the GBP or the USD so it is likely to be a quiet day.

About the Author
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

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