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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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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.