GBP/USD Forex Signal - 2 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 entered before 5pm London time.

 

Short Trade 1

  • Go short 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

  • Go long following bullish price action on the H1 time frame immediately following the next touch of 1.5591.

  • Put 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 run.

GBP/USD Analysis

It has looked like the price had really broken past 1.5789 but this was not the case and it ultimately held and reversed the upwards move that took place during the first half of last week.

This morning we may have made a triple bottom at 1.5591 which is the bottom of the bearish triangle that this pair is currently trading within.

So far this morning it looks like there will be an upwards move this morning, but there are news events that might push the price around. A spike down to 1.5591 which is then held by bullish price action could be a good long opportunity, whereas another rejection of 1.5789 would be a good location to take a short.

We are still in a downwards trend but a breakout above 1.5789 could be bullishly significant.

GBPUSD 12214

There is a high-impact data releases scheduled today that will directly affect the GBP, but nothing concerning the USD. Regarding the GBP, at 9:30am London time there will be a release of U.K. Construction PMI data.

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.