And now that the Fed has communicated its policy plans, I feel that there’s even more reason to buy Cable. While Carney and other top BOE officials are hinting of rate hikes this year, Janet Yellen and her gang are sticking to the program and are not even interested in rate hikes in the foreseeable future. Heck, they even DOWNgraded Uncle Sam’s 2014 growth forecasts!
This is why I bought GBP/USD at the first opportunity that I got. I was watching the 4-hour chart and bought as soon as a green candle closed above the 1.7000 major psychological handle. I risked 0.50% of my account at 1.7030 and placed a 100-pip stop on two 0.25% positions.
I’m watching this pair closely for signs of end-of-week reversals but for now the plan is to hold on to my positions until there’s a catalyst that would invalidate my fundamental bias.
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Thanks and have a great trading day!