The classic scenario of “buy the rumor, sell the fact” played out early this morning as GBP/USD dropped as soon as the Bank of England announced that they raised rates to 5.00%. Unfortunately for us, the pair was about 100 pips away from our entry order right before the statement release. I personally took off my entry orders because of this, as I knew we’d only catch the end of the move if we were to get triggered – which we did after the positive US Trade Balance number was released better than expected.

This is one reason why I can’t wait for BabyPips.com 2.0 to be released. It will be in a format in which I can update “Picks” throughout the trading day and share ideas with everyone who visits. Until then, for those who did take the trade, we’ll count this one as a loss of -30 pips per lot. Doh!!!!!

Lot 1: -30 pips
Lot 2: -30 pips
Total: -60 pips