GBP/USD Forex Signal - 15 December 2014

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By: DailyForex.com

GBP/USD Signals Update

Last Thursday’s signals expired as the price never touched either 1.5789 or 1.5591.

Today’s GBP/USD Signals

  • Risk 0.75%

  • Trades may only be made between 8am and 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.

  • Put 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 run.

 

Long Trade 1

  • Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.5650.

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

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

GBP/USD Analysis

Last week closed up as a bullish engulfing candle, the first that there has been for some time. This might be an early indication that a move up is beginning, and we have breached and successfully retested a key bearish trend line. When happens at the next serious test of the next key resistance level at 1.5789 is quite likely to determine the direction for the rest of this week.

Below, the support at 1.5650 is starting to look significant.

GBPUSD 121514

There are no high-impact data releases scheduled today directly concerning either the GBP or the USD. It will probably be a quiet day today for this pair.

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.