GBP/USD Signal - April 17, 2014

Adam Lemon

GBP/USD Signal Update

Yesterday’s signals expired without being triggered as the price did not reach 1.6623, and did not show any bearish price action when it reached 1.6753.

Today’s GBP/USD Signals

Risk 0.75%

Enter only before 5pm London time today.

Long Trade 1

Enter long with a buy limit order at the first touch of 1.6753.

Place the stop loss at 1.6690.

Adjust the stop loss to break even when the price reaches 1.6815.

Take 50% of the position as profit at 1.6815 and leave the remainder of the position to ride.

Short Trade 1

Take a short entry after confirming bearish price action on the H1 chart following a first touch of 1.6884.

Put a stop loss 1 pip above the local swing high.

Close the trade at 1.6830.

GBP/USD Analysis

I wrote yesterday that I had a bullish bias on this pair and this has been borne out by the fact that today we have reached a new four and a half year high even before London has opened. The immediate reason for this was the excellent economic data that was released by the UK government yesterday.

There was flipped resistance below us at 1.6753 which is quite likely to act as good support in the fairly unlikely event that we get back down there during today’s London session, as we broke upwards through that level so strongly and cleanly.

Above us there is old flipped resistance from 2009 at 1.6884 that if confirmed by bearish price action could be a good area to take a conservative short.

We are far enough away from 1.6753 to look for a long touch trade there.

GBPUSD Signal 41714

There are no high-impact news releases due today concerning the GBP. At 1:30pm London time there is a release of US Unemployment Claims data, followed by the Philly Fed Manufacturing Index at 3pm. Therefore it is likely to be fairly quiet for this pair before the New York open.

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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