GBP/USD Forex Signal - 5 March 2015

Adam Lemon

GBP/USD Signals Update

Yesterday’s signal was not triggered as the price never reached 1.5427.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm London time only.

 

Short Trade 1

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.5350.

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

  • Adjust the stop loss to break even once the trade is 30 pips in profit.

  • Remove 50% of the position as profit at 1.5210 and leave the remainder of the position to run to 1.5120.

GBP/USD Analysis

I had forecast yesterday that this pair was in danger of breaking down past the crucial support zone from 1.5350 if the first hour of the London session was unable to give the price a good push up. This is what happened and the price did break down and fell almost all the way to the next whole number at 1.5200. That has called the recent GBP bullishness into serious question and it seems that the USD is the only real strong currency that is holding up right now.

That leaves this pair in something of a no-man’s land now. It would seem likely that 1.5350 will now become serious resistance so that would be an obvious level at which to seek to get short off a bearish reversal. Support below is less obvious. There will probably be minor support at the whole number of 1.5200 and there does seem to be stronger support waiting at 1.5100 which is too far away to be concerned with right now.

GBPUSD 3515

There are high-impact events scheduled for both the GBP and the USD today. Regarding the GBP, there will be a release of the Official Bank Rate and the MPC Rate Statement at Noon London time. Concerning the USD, there will be a release of Unemployment Claims data later at 1:30pm.

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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.