Cherry94

Pound to the mean

Short
Cherry94 Updated   
FX:GBPJPY   British Pound / Japanese Yen
Fundamentals

GBP: Dovish outlook (Market is pricing BoE to cut rates in June 2024. The pound is also overpriced based on its yield differenial. Although the currency is quite stretched to the downside in the COT report, there's still some room to decline.

JPY: BOJ is currently the most hawkish central bank. JPY is testing lows in COT report, so some rebound is possible.

Technical & other

Setup: S(RTF)
Setup timeframe: 1h
Trigger: 1h (sell stop)
Medium-term: range
Long-term: Up
Min target: local support
Risk: 0.17%
Trade closed: stop reached:
Strong UK data - should've closed before the release as the price was dancing around breakeven. What's worse, because of Thanksgiving day, the market was very thin so I got 17 pips slippage when exiting.

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