FX.co ★ Trading idea for GBP/USD for May 4, 2021

Hello, dear traders! Let us discuss the trading idea for GBP/USD.

The trading instrument has recently been in the consolidation zone between 1.40000 and 1.36600. Based on the Stop hunting strategy, the price will approach both levels sooner or later. The analysis of impulsive bull moves for today indicates the power of buyers. Let us consider a long-term scenario to the 1.40000 level.

Based on yesterday's bullish trend, the price is currently in the 50% retracement zone:

Thus, we have a three-wave structure - ABC. In this case, Wave A indicates yesterday's bullish trend. Traders should consider entering long positions from the 50% retracement level of 1.38635 according to the chart. A Stop Loss and a Take Profit should be placed at 1.38300 and 1.40000 respectively. The trading idea for GBP/USD is based on the strategies Price action and Stop hunting.

Have a nice trading day!