#GBPUSD

▪️ Trade: Buy limit order
▪️ Entry: 1.33434
▪️ Take profit: Open
▪️ Stop loss: 1.32300
▪️ Valid until: Canceled
Market outlook:
We’re looking for another long entry in GBP/USD.
Our previous buy near 1.33951 allowed us to take profits on half the position and move the stop to breakeven. The expected continuation didn’t materialize, and the remaining half was stopped out at entry. We banked the partial profit and are now watching for the next opportunity.
Sterling stands out for a reason. From a carry-trade perspective, yesterday’s rate hike makes the pound more attractive to investors seeking yield. That could help it hold up better than some other currencies during a broader selloff. The Australian and New Zealand dollars have fallen back toward their early-2025 levels, while sterling has shown greater relative strength. At this stage, chasing the decline with a short looks less attractive.
Today’s U.S. nonfarm payrolls report at 16:30 Moscow time (13:30 UTC) could bring increased volatility. Our primary scenario is an initial long squeeze into newly formed support at 1.33350 , followed by a rebound. This level has yet to be retested, and our approach gives particular weight to the first test of fresh support.
The fundamental backdrop also supports our bullish view. Yesterday, the Bank of England raised rates to 4% , its first increase since 2023. All committee members supported a hike, with one favoring a larger 50-basis-point increase . The Bank expects inflation to peak near 5% by mid-2027 , and another hike before year-end remains possible, with markets pricing roughly a 50% chance .
With UK rates already above current inflation, sterling’s yield advantage adds to the case for buying a pullback.
Our buy limit is set at 1.33434 , just above the fresh support level at 1.33350 .
Risk management:
The stop loss is set at 1.32300 , below the next support level at 1.32456 , in line with our trading system. This leaves room for a false breakdown while defining the trade’s initial risk.
Targets:
The first objective is a recovery toward 1.34122 . Once price establishes itself above that level and successfully retests it, we will move the stop to breakeven.
The next target is resistance at 1.34891 . This area has already been tested, so either a sustained breakout or a false break is possible. We’re leaving the take profit open and will manage the position as the setup develops.
The limit order remains active until canceled. Once filled, we’ll provide position updates. The setup meets our trading system’s criteria.
Wishing everyone profitable trading and a strong finish to the week 🤝
Trade updates: https://t.me/addlist/1tRFE2bSkE04MWNi