FX.co ★ GBPUSD trading idea is a bull's trap

Currency traders reacted with the collapse of the GBPUSD pair, generating a powerful short momentum, which left a curious platform for bulls to hunt for according to the following scheme:

Greetings, dear traders! I present to you a trading idea for GBPUSD.

Today, for the first time in 40 years, the Bank of England raised the rate by 50 bps, to 1.75%, and warned of the threat of a prolonged recession

Currency traders reacted with the collapse of the GBPUSD pair, generating a powerful short momentum, which left a curious platform for bulls to hunt for according to the following scheme:

In fact, we have a three-wave structure of "ABC", where the short initiative on the BoE rate acts as wave A.

I propose to consider short positions with a rollback of 50% on Fibo according to the scheme shown above.

The risks are limited to 1.22. The profit should be consolidated at the breakdown of 1.20600.

The trading idea is presented within the framework of the "Price Action" and "Stop Hunting" methods.

Good luck in trading and control the risks!