Trading the trend: long GBP/USD
Since GBP/USD didn’t sell off despite UK inflation coming in lower than expected, we would like to buy the cross ahead of the FOMC meeting around $1.2700, with a stop loss at $1.2500 and an upside target at $1.3000.
(AI Video Summary)
Previous VIX, Chicago wheat and Brent crude trading outcomes
In this week's "Trading the trend", Axel Rudolph talks about his previous trades and gives some advice on potential trading opportunities. He mentions that he had taken a positive position on the US volatility index (VIX) and suggests either raising the stop loss or taking profit at the breakeven level since the trade had become profitable. He also suggests going long on VIX because of the FOMC meeting happening later in the day, with a stop loss level at 13.75.
Next, he discusses his short position on Chicago wheat, which he entered at 552.00 after the downtrend support broke. He set the stop loss for this trade at 595.00 and advised letting it run.
He also talks about his long position on Brent crude oil at 82.46, suggesting either raising the take profit stop to the entry level or cashing it in with a profit around 85.83.
This week's trading opportunity
Moving on to this week's trading opportunity, Rudolph focuses on the GBP/USD pair. He notes that the currency pair has been on an upward trend since October of the previous year, with a strong rise between October and December, a sideways trading range, and another rally in March. He mentions that UK inflation data came in lower than expected, but it hasn't caused a significant decrease in the British pound so far.
With the expectation of the British pound appreciating further, he suggests buying it against the US dollar with a wide stop loss. He recommends going long on cable at around $1.2700 with a stop loss just below $1.2500 and an upside target of around $1.3000. However, he advises keeping an eye on the FOMC's statements about its stock plot, as it could impact the value of the US dollar and potentially affect the trade.
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