GBP/USD Forex Signal - 11 December 2014

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By: DailyForex.com

GBP/USD Signals Update

Yesterday's signals were not triggered and expired.

Today’s GBP/USD Signals

  • Risk 0.75%

  • Trades must be made before 5pm London time.

 

Short Trade 1

  • Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.5789.

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

  • Adjust the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.

 

Long Trade 1

  • Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.5591.

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

  • Adjust the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.

GBP/USD Analysis

As we had broken up above the bearish trend line, I wrote yesterday that things looked bullish, but that there was a fair amount of choppy swing highs above 1.5700 that might make it hard to realy move up.

This is what happened as although we did move up yesterday, the action overnight and this morning has been bearish, suggesting that we are going to fall back to the broken trend line, and possibly through it to the support at 1.5591.

We did bounce off the trend line yesterday very early right to the pip, but trend lines tend to be not very effective with this pair, so I am waiting for 1.5591 before looking for another long.

GBPUSD 121114

There are no high-impact data releases scheduled today directly concerning the GBP. Regarding the USD, there will be releases of Retail Sales and Unemployment Claims data at 1:30pm.

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.