GBP/USD Forex Signal - 3 December 2014

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By: DailyForex.com

GBP/USD Signals Update

Yesterday’s signals expired without being triggered, as the price did not reach either 1.5789 or 1.5591 during the London session.

Today’s GBP/USD Signals

  • Risk 0.75%

  • Trades may only be taken 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 1.5789.

  • 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

I wrote yesterday that the London session was likely to see some kind of move down and this did happen. Earlier the move down in this pair was stronger than the move down in EUR/USD, but then following the New York open the EUR/USD overtook it. Like the EUR/USD, this pair is also sitting within a triangle and its key levels are holding, and this is pretty likely to continue until after the key USD news release coming this Friday.

Right now we are in the middle of a range, there may be some residual bearishness, but until 1.5591 we will probably be at the mercy of being chopped around by all the news releases that are coming for both sides of the pair today. Any USD bullish / GBP bearish news is likely to push the price down to 1.5691. As 1.5591 has been tapped three times already, it might be ready to break down, instead of acting as good support.

For these reasons, any trades today should be taken very carefully.

GBPUSD 12314

There are high-impact data releases scheduled today directly concerning both the GBP and the USD. Regarding the GBP, there will be a release of Services PMI data at 9:30am London time, followed later by the Autumn Forecast Statement at 12:30pm. Regarding the USD, there will be a release of ADP Non-Farm Employment Changes at 1:15pm London time, followed later by ISM Non-Manufacturing PMI at 3pm. It is likely to be a volatile day.

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.