FX.co ★ Trading idea for the GBP/USD pair

The conclusion of the Brexit trade deal led to a sharp rise in GBP / USD. In particular, it reached a price level of 1.37.

But since the UK government decided to impose a national lockdown just recently, it would be best to short the pound, because in such a situation, a price decline is inevitable.

In fact, the quotes have already formed three wave patterns (ABC), in which wave A is the movement observed last January 4. Considering that the market has pulled back above the 50% retracement level, short positions may be opened from the current prices, and the target may be set at 1.35400.

Of course, traders have to monitor the risk to avoid losing money. Trading is very precarious, but also profitable as long as the right approach is used.

The above strategy uses Price Action and Stop Hunting methods.

Good luck!