FX:GBPUSD British Pound/U.S. Dollar
1H chart: i've been watching, and waiting for this pairs breakout. This will be my last short call on this crappy pair. lets see how it goes
The best way to trade such strong trending pairs is to simply trade in the direction of the prevailing trend. Today's H1/H4 interval had a nice set up to the short side which eventually burst to the upside. So at least for me, regardless of how strong or juicy a short/corrective/counter-trade set up looks like, always best to wait for the correction to get over with and get in on the main side of the trend. But for such counter trend trades, I think RSI or Stochs or even MACD divergences should be great to play with.
i should have mentioned in my original post that the fundamentals have been priced in, so now i believe this was the last leg up and a good contra-trend short. BUT, as long as sentiment stays in sync with fundamentals (as today's 100 pip move shows), then i'll do as channeltrader says: buy the dips. BUT if sentiment should suddenly shift to USD bullishness (however by some miracle that should happen), then regardless of the potential rate hike by the BoE, i'd be looking to short more.