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With the BOE decision coming up, I’m making another set of adjustments on my long Guppy position in order to lock in some gains.

Long GBP/JPY Idea

In my previous trade update, I was able to adjust my stop slightly above entry as the pair showed stronger bullish momentum after the Japanese elections.

This time, another major event risk is coming up in the form of the BOE interest rate statement and even though expectations for a rate hike are high, I’d still like to reduce my exposure to this catalyst.

With that, I’ve rolled my stop up again, this time to the 149.75 level in order to make sure I don’t give up too much of my profits in case the pair tumbles during the event. After all, there could be a chance that this would be a “dovish hike” in which policymakers might emphasize that they’re not looking to tighten again anytime soon.

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

This should allow me to catch at least 40 pips on my long position while keeping my trade open for a chance to reach my target near the swing high.

I’m also open to closing early during the actual announcement in case pound bears start showing up. But if more bulls seem ready to charge, I’ll also be on the lookout to add to or reopen my trade on a break past the 153.00 handle.

In any case, I’m guaranteed a 40-pip gain or 0.07% profit on my account with this adjustment. Hopefully this is wide enough to withstand any volatile swings during the BOE announcement!

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