Forex Update: Buy GBP/USD For A Long-Term Trade

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.

Buy GBP/USD For A Long-Term Trade

GBP/USD Forex Weekly Chart

GBP/USD Forex Weekly Chart

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?

XOXO,

Huck

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  • ForExchange

    Hi Huck,
    the GBP is on the rise but I do have a strong USD bias. If you want to play long GBP, isn’t there a better setup vs. a weak currency?

    Good luck

    • strictly86

      Selling EUR/GBP would be a good play or GBP/CHF

      • Hucklekiwi Pip

        Yeah, that might have been a good idea. The dollar was just too strong. Did you trade any of those pairs?

    • Hucklekiwi Pip

      Yep, I probably should have done that instead. Did you have any long USD positions last week? 🙂

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