GBP/USD Forex Signal - 29 December 2014

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By: DailyForex.com

GBP/USD Signals Update

Last Tuesday’s signal was not triggered as although the price did hit the anticipated support at 1.5541, it cut right through it without producing any bullish price action.

Today’s GBP/USD Signals

  • Risk 0.75%

  • Trades may be entered only between 8am and 5pm London time.

Short Trade 1

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.5606.

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

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

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remove of the position to ride.

Short Trade 2

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.5675.

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

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

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remove of the position to ride.

Long Trade 1

  • Go long after bullish price action on the H1 time frame immediately following the next touch of 1.5500.

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

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

  • Take off 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

GBP/USD Analysis

Despite the renewed strengthening of the USD that was seen last week, this pair found pretty viable support at the key psychological level of 1.5500, and has been moving up since then slowly but steadily. As it will probably be a fairly quiet day, I would expect either the support at 1.5500 or the resistance at 1.5606 to hold today.

GBPUSD 122914

There are no high-impact data releases scheduled today concerning the GBP or the USD. It is likely to be a quiet day for this pair.

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.
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