GBP/USD Forex Signal- Sept. 2, 2014
GBP/USD Signals Update
Yesterday’s short signal 2 was triggered by the M15 pin bar on the bearish trend line forming a major higher low, as shown below. I did not take this trade as it was after the New York open on a public holiday in the U.S.A. If you are in the trade, it will be a good idea to leave the remainder to ride for the time being, as the USD is strong, looking to take at least some more profit at 1.6550.
Today’s GBP/USD Signals
Risk 0.75% of equity.
Entries must be made before 5pm London time today only.
Go long following bullish price action on the H1 time frame after the first touch of 1.6500.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.6571.
Take the risk off the trade at 1.6571 and leave the remainder of the position to run.
Short Trade 1
Short entry following bearish price action on the H1 time frame after the first touch of 1.6655.
Put a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.6600.
Take off 50% of the position as profit at 1.6600, half of the remainder at 1.6550, and then leave the rest of the position to run.
Short Trade 2
Go short following a strong lower high below 1.6643.
Place a stop loss 1 pip above the local swing high.
Take off 75% of the position when profit is twice risk and leave the remainder to run.
As I expected yesterday, there was a short trade opportunity off a reversal from the bearish trend line after the news release. The price has been falling from there and is currently approaching a support area at around 1.6550 from which it might bounce up again. If we break through there, there is likely to be further support at the key whole number of 1.6500. There are two news releases that might spike us to key levels and it might even be the case that the bearish trend line would be resistant again today.
Beyond the trend line, there is flipped resistance above at 1.6655.
Regarding the GBP, at 9:30am London time there will be a release of Construction PMI data. Later at 3pm, there will a release of U.S.A. ISM Manufacturing PMI data.
- Currency Pairs