Today, I have made the decision to open a short position on GBPUSD, driven by an unexpected development in the inflation of England. It was anticipated that the inflation would decrease from 8.7% to 8.2%, however, the revealed figure stood at 7.9%. This occurrence diminishes the likelihood of future interest rate hikes by the Bank of England, rendering the British pound less attractive and potentially increasing its supply in the market. Furthermore, in the past few hours, the dollar has proven to be the strongest currency, which further bolsters my position in this trade.
It can be observed that yesterday, the price broke a bullish trend, indicating a potential shift from bullish to bearish in GBPUSD, further reinforcing the short position that was opened. Additionally, it is evident that at the time of the news, there was a substantial increase in trading volume, signaling a significant selling pressure on GBPUSD, thus strengthening the notion of selling pounds and buying dollars.
If the price reaches 1.2898, it is advisable to adjust the stop loss to the entry point of the trade to ensure that no losses are incurred.
It can be observed that yesterday, the price broke a bullish trend, indicating a potential shift from bullish to bearish in GBPUSD, further reinforcing the short position that was opened. Additionally, it is evident that at the time of the news, there was a substantial increase in trading volume, signaling a significant selling pressure on GBPUSD, thus strengthening the notion of selling pounds and buying dollars.
If the price reaches 1.2898, it is advisable to adjust the stop loss to the entry point of the trade to ensure that no losses are incurred.