GBP/USD Signal- April 28, 2014

GBP/USD Signal Update

Last Thursday’s signals were not triggered and expired as the price never reached either 1.3751 or 1.3861.

Today’s GBP/USD Signals

Risk 0.75%

Entry must be made before 5pm London time today.

Short Trade 1

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

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

Adjust the stop loss to break even and take half the position as profit at 1.6830 and leave the remainder to run until 1.6760.

Long Trade 1

Go long following confirming bullish price action on the H1 chart after a first touch of 1.6753.

Place a stop loss 1 pip below the local swing low.

Take the risk off the trade when the price reaches 1.6784.

Take 50% of the position as profit at 1.6825 and half of the remainder of the position at 1.6880.

GBP/USD Analysis

The GBP remains the strongest of all the global currencies and although we have had a period of consolidation there is no reason to doubt that this pair’s uptrend is over yet, in spite of the double top above us at around 1.6840.

We did have a pull-back as I mentioned in my previous analysis, but unfortunately we were not quite able to get back to the supportive level I had identified at 1.6753, although we did reach to within 10 pips or so from it.

It might be possible to take a conservative short if the price reached 1.6884, but this would need to be confirmed by very strong bearish price action.

We have had a strong move up already this morning so it could be that we make a new high today.

Should the price fall down, we could still look for a good long at 1.6753, but this is unlikely to be reached today.

GBPUSD Signal 42814

There is no high-impact news due today for the GBP. At 3pm London time there will be a release of US Pending Home Sales which could affect the USD.

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.