The BoE indicated that a rate hike could come towards the end of the first quarter of 2015, or the beginning of the following quarter, dampening expectations of an early rate hike, and stressing that although the economy is improving a rate hike is still not justified, it would be, only if slack in the economy started to diminish and inflation starts to pick up. "Unless inflation expectations really start to take off, the BoE will judge that there is enough slack in the economy to keep rates on hold for a while yet," he said in a note. I believe that a downside correction that is deeper is likely, as "weak longs" cover their position and could be a strong reason for profit taking on longs.
Technically, the price has completed a head and shoulders top over the four-hour chart, by breaking the key support area around 1.6820, I will be looking to short near that area if we witness the pullback, targeting 1.6700 and 1.6655 levels. Holding back above 1.6875 will probably force me to exit.
I was following this pair since last week, my system gave me a trigger signal to short the pair so I did... Everything comes down to following a business plan guys. 2 weeks ago took a loser shorting the top of EURUSD, but that's the thing with any plan: No plan will ever be successful 100% of the time, no matter how good you make it.
My target is at 1.6690's, good luck for those who got into this trade.
Best regards
gringerman
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I am enjoying the discussion on this trade. Since there are traders agreeing on both sides of the trade, it clearly shows that there is no direction to the trade. GBPUSD is in a trading range and may breakout one way or the other. The pair completed a long uptrend and went into a correction, which retraced 50% of the original uptrend. After that, it has been trading up and down within a range, waiting for it to be resolved one way or the other. I think this will be resolved just before or after the GBP Consumer Price Index announcement on May 20, 08:30 UTC.
As Bou_Zid and Technician mentioned, the market can change direction any time and better to wait for confirmation. While my bias is on the long side since price is bouncing after the retracement, I am also waiting for a strong confirmation for a long term trade. Good luck!
JamesCorreia
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gringerman, you give a good point. But every setup can always have a break up or down, there is never an absolute certainty no any setups whatsoever. We can just make up a plan and act accordingly to it. What the market will do after we open our exposure, it's never predictable. Nobody can open a trade a guarantee it is going to be a winner, nobody. That's a good point for anybody that it's still finding it's way through the markets.
Good luck to you all
JamesCorreia
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Also, I too believe tomorrow's announcement will be the deal breaker
gringerman
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Take a look at the GBPUSD daily chart analysis which I have published in the attached chart. Please do let me know your comments.tradingview.com/v/eCbky2fP/
Technician
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Good trades guyz, good thing never got shorting signal here .
ForceFollower
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Right, Technician. That's what the entry trigger setups are for.
Technician
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Actually, I was going to short on a break below 1.6800, but price failed to .
JamesCorreia
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Took a loser on this one, on the plus side, I had a short trade on EURGBP aswell... Lost X on GBPUSD to profit twice as much on EURGBP (I always risk exactly the same amount per trade)
See you guys on the next setup
Best regards
Technician
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Good Spetz, wish you luck. See you on the next one
My target is at 1.6690's, good luck for those who got into this trade.
Best regards