Aaand I’m in!
As I mentioned in a trade setup last week, I’m looking at GBP/USD for a long-term bullish move. You see, I’m banking on Mark Carney’s hints a few weeks back about a rate hike some time in early 2015. I also chose to buy Cable because it was sitting at a significant technical level with a lot of indicators showing a possible move higher.
I thought that I had already missed the bus, so I entered at market (1.6520) last week just before the Scottish referendum results were announced. I risked 0.75% of my account and put a 300-pip stop loss (100 pips more than the average weekly ATR) to give the pair room to breathe.
In hindsight, I probably should have been more patient with my entry. I could have waited a couple more hours to see just how investors would react to the Scottish referendum final results before I entered a trade. I also could have just entered a small position at 1.6200 when I first wrote about it and made adjustments throughout the FOMC and Scotland’s major announcements.
Right now the pair looks like it’s still ripe for a bounce on the weekly chart. I’m keeping close tabs on this pair though, in case traders are more keen on pricing in a rate hike from the Fed than a possible BOE rate hike in 2015.
How about you? Do you think GBP/USD still has room for a move higher?