FX.co ★ Trading idea for the GBP/USD pair

The continued weakening of the US dollar, plus the hopes for a post-Brexit deal between the UK and the EU, brought the GBP / USD pair close to the round level of 1.34, which is a good area for sellers to place their weekly stop orders.

The area is about 100 pips away from the level of 1.35:

In this situation, it is extremely risky to be in short positions, because over the medium term, traders could be fooled into placing stop orders at 1.34 and 1.35, which, in most cases, leads to losses.

Instead, it would be better to open long positions with buy stop order at 1.34, and then take profit around the level of 1.35. Stop loss may be placed at 1.33. Such guarantees a strong bullish momentum between 1.34 and 1.35.

(Price Action and Stop Hunting were used for the above strategy)

Good luck!