FX.co ★ Trading idea for GBP/USD

The Bank of England announced that it would leave the interest rate unchanged at 0.1% and the volume of bond purchases at £ 895 billion. Naturally, pound reacted restrainedly on this news, but now it is trading above yesterday's quotes, maintaining the bullish trend.

Such formed a three-wave pattern (ABC) on the chart, where wave A represents the buying pressure in the market.

Considering this, it is a good idea to open short positions, the target of which is to induce a 50% pullback from the current prices. Place stop loss at 1.38600, and then take profit as soon as the quote reaches 1.4.

This strategy follows the Price Action and Stop Hunting methods.

Good luck!