FX.co ★ Trading idea for GBP/USD: trap for sellers

Hi, dear traders! Let me share my trading idea for GBP/USD with you. Yesterday, after the US inflation data, GBP/USD spiked and generated a signal bar on the daily chart called engulfing in the trend. I suggest the trading idea based on further growth of the trading instrument after a retracement.

I assume the trading instrument could continue its growth after a retracement according to the following screenshot.

In fact, we are dealing with a three-wave ABC structure where wave A serves as yesterday'sbuying impulse.

We could plan long positions from the 50% Fibonacci retracement, i.e. from 1.21700. I suggest the following scenario.

A stop loss could be set at 1.20700. We could take profit at a breakout of 1.23.

The trading idea is developed according to the author's methods known as Price Action andHunting for stop orders. Good luck in trading! Make sure you control your risks!