In advance of the BOE Carney’s announcement about the One Bank Research Agenda the GBP set up with a classic short reversal. The idea was to keep the stops tight and see where the market would eventually take us out. Price moved down before bouncing back above yesterday’s high… where we were taken out.
After Janet Yellen’s testimony yesterday the market has been fairly quiet and we remain USD bullish… but with a less enthusiasm. A possible rate hike for June is still possible, but could easily be delayed. The Fed is not going to put the economic recovery at risk.
Good luck with your trading!
Back tomorrow if we find a trade.