The #cable has been falling against the #Dollar for some time now (about 6 weeks), after almost reaching 1.72 it, has fallen to way below 1.67 (at the time of writing this post).
This fall could be due to the lack of eagerness from the #BoE to raise interest rates. Instead Mark Carney seems to be taking a cautious approach and is not going to be forced to rush the increasing of interest rates.
At first when I saw the #GBPUSD declining I thought it may just be a small pull back, and we would be seeing price return to either hitting higher highs or price moving sideways for a while. However when price broke through around the 1.7050 level, I decided to start looking for signals to go short, and over the last couple of weeks all my GBP/USD trades have been short (I like to go with the flow, not against it).
On the 12/08/14 I placed a sell order around 11pm GMT at 1.6818, as the price was near a broken support level and I decided the level would most likely be respected as resistance after analysing using different tools.
I placed the order and went to bed shortly after. When I woke up the next day it slipped my mind to check my trades. So I went along with my day and only after a good afternoon workout session and a lovely dinner (cooked by myself :)) that I remembered the trade. I quickly logged in to my account and was pleased the trade went very well, I was in profit of 130 pips and counting.
Below is a screen shot of my latest GBP/USD trade.
The strong downward move was due to the worse than expected release of the BoE inflation report, before the release the price was moving upwards until its release at 9:30 am when price fell sharply, there was a big up move at around 10:30 am (possibly some form of stop-hunting) and then price continued to fall.
I hope other traders profited off this trade or any others similar regarding the BoE inflation report.
Follow @PiDeJongeLabels: Bank of England, BoE, GBP/USD, Inflation, interest rates, news trading, strategy, trading strategies
