GBP/USD Forex Signal - 30 December 2014

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By: DailyForex.com

GBP/USD Signals Update

Yesterday’s signals expired without being triggered.

Today’s GBP/USD Signals

  • Risk 0.75%

  • Trades must be entered before 5pm London time.

Short Trade 1

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

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

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

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remove of the position to run.

Short Trade 2

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

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

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

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remove of the position to run.

GBP/USD Analysis

As expected, yesterday was a fairly quiet day, and the closest support and resistance levels mentioned were not hit and therefore held.

The price continued to fall overnight with a strengthening USD across the board (with the exception of the JPY), and this morning just before the London open we hit the anticipated supportive level at 1.5500 from which the price has rebounded about 40 pips at the time of writing.

As the London open is very unpredictable I cannot give a long signal from here, although it might well hold as support again. If at 9am London time the last hourly candle has been strongly bullish, this is a sign the price is likely to have a bullish direction, at least until local resistance is reached at around 1.5580.

Above there is probable resistance at 1.5606 that could provide a good short entry if the price action is right.

GBPUSD 123014

There are no high-impact data releases scheduled today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.