FX.co ★ Trading idea for GBP/USD

Dollar soared last week, after the Federal Reserve said interest rates may increase much earlier than scheduled. Accordingly, risk assets slipped, including GBP / USD.

Considering this, bearish traders can enter the market and open new short positions.

To be more specific, since pound has a three-wave pattern (ABC), where wave A represents the selling pressure last week, traders can open short positions to trigger a 50% pullback from 1.39500-1.40000. Stop loss should be placed at 1.4100, while profit should be set at 1.37800-1.36700.

This idea is under the framework of Price Action and Stop Hunting strategies.

Good luck!