GBP/USD trading plan & analysis

After sharp fall since 6th Nov, a correction is anticipated. We entered long trade right after first spike was formed following the release of UK CPI which beat the forecast.

We anticipate the cable to move up at least by similar magnitude as the previous one, see the graph below. It will be completed at 38.2% retracement level of the recent swing down, which makes it an appropriate target.

We have shown the exit point in the graph shown above. If the pair will close the day below it, we will take loss and exit.