GBP/USD Forex Signal 5/16/2016

GBP/USD Signals Update

Last Wednesday’s signals were not triggered.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm London time today.

Long Trades

Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4285 or 1.4241.

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 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Short Trades

Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4420, 1.4462 or 1.4520.

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

Move the stop loss to break even once the trade is 25 pips in profit.

Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

GBP/USD Analysis

The bears ultimately won last week’s fight, pushing the price below a long-term supportive trend line, due mainly to the strengthening of the USD. There are fears over the UK voting to exit the European Union next month, with the polls showing a narrow result, although the betting shops are still giving best odds on a vote to remain. The GBP is the only currency in a long-term downwards trend against the USD, so this is a good pair to be short of when the USD weakens.

There is probably minor resistance starting right at the next round number, 20 pips ahead of the next key level of 1.4420.