GBP/USD has been in a broad upward trend since the end of September. As such, sellers are concentrating under the level of 1.6500.
Taking the last bullish move as an initiative, it is clear that quotes rolled back by 50%, creating favorable conditions for further long positions.
And considering that previous price movements form a three-wave pattern (ABC), where wave A represents the buying pressure, traders can enter the market by taking long positions from current prices up to the 50% retracement level. Set stop loss at 1.11500, then exit the market on the breakdown of 1.16500.
For more effective risk management, search for bullish signals within the market.
This trading idea is based on the "Price Action" and "Stop Hunting" methods.
Good luck and have a nice day! Don't forget to control the risks.