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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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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(AI Video Summary)

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.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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