Trade of the week: long GBP/USD
IG's Chris Beauchamp looks at GBP/USD, going long on the pair with a close above $1.2830, with a stop at $1.27.
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This video was created on 5 August for IG audiences.
Previous EUR/USD trading outcome
In the latest epsiode of "Trade of the week" for the week of 5 August, Chris Beauchamp's focus shifts from a previously profitable short EUR/USD position to a new trading opportunity due to a dramatic shift caused by a weaker-than-expected US payrolls report.
This weak report spurred expectations of a significant Federal Reserve (Fed) interest rate cut in September, anticipated to be 50 basis points, impacting the US dollar strength and halting the EUR/USD short position.
This week's trading opportunity
Looking ahead, amid volatile equity and forex markets, Beauchamp suggests a long position in GBP/USD (cable), recommending entry if it rises above $1.2830, with a stop loss at $1.27 to manage risks in the uncertain market.
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