GBP/USD Forex Signal - 5 January 2015

Adam Lemon
Adam Lemon
on January 05, 2015 | Updated On Jan 05, 2015

By: DailyForex.com

GBP/USD Signals Update

Last Wednesday’s signal to go short following bearish price action at resistance at 1.5606 gave a trade entry. This produced only a small profit if taken in accordance with the given trade management rules, but if allowed to run would now be in profit by approximately 260 pips.

Today’s GBP/USD Signals

No signal is given today.

GBP/USD Analysis

The pair made a sharp move down last Friday as the market opened for the New Year, driven mainly by weakness in the EUR which had a knock-on effect on the GBP. When the market opened last night with a gap down the price then fell very quickly to make a new near two year low, before rebounding quickly. This suggests that we will probably see a choppy week as the price struggles to find its level. The size of the space from the beginning of the drop on Friday to the low that was made last night is quite large. When these sudden moves happen, especially at the beginning of a new month or year, they tend to precede choppy period. That is not to say the strong USD trend is necessarily going to end.

There is no obvious resistance before 1.5484 and we are currently quite far from this price, as we also are from the support below at 1.5128.

GBPUSD 1515

There is a high-impact data release scheduled today concerning the GBP, but nothing regarding the USD. At 9:30am London time, there will be a release of U.K. Construction CPI data.

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About the Author
Adam Lemon

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.
Learn more from Adam in his free lessons at FX Academy

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