I couldn’t resist doing another pick on the GBP/USD with such a nice technical setup. Fundamentally, we saw a strong drop in the pair due to inline results from manufacturing and industrial data from the UK, and rising inflation expectations from the US. Of course, we saw a retracement on profit taking after the move, so what’s next for this volatile pair? Well, we have the Bank of England rate decision tomorrow morning at 7:00 am EST with the market forecasting no change. In the upcoming euro session, little movement is predicted – probably due to traders waiting on the sidelines until tomorrow morning. If there is a surprise change we could possibly a potential +100 pips. Until then, I’m going to stick with a short play on the pair and I’ll have a long trade ready in case of a surprise raise in interest rates from the BoE…
Short GBP/USD at 1.8850, stop at 1.8875, pt1 at 1.8830, pt2 at 1.8770
Long GBP/USD at 1.8900 stop at 1.8880, pt1 at 1.8930, pt2 at 1.8960
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.