How We Traded And Profited 410 Pips From The BoE Rate Statement

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ANALYSIS PRIOR TO BOE RATE STATEMENT

On the 13th September (Wednesday), one day before the BoE Rate Statement, we had our Alpha Play Weekly Traders Meetup where we shared our analysis and insights on the UK Pound (GBP); and how we are preparing to trade the BoE Rate Statement.

Below is a summary of our analysis before the Rate Statement, and the results after the Rate Statement.

Going into the BoE Rate Statement, based on our analysis, we remain bullish on the GBP with the following pairs providing us with good trading setups:

  1. EURGBP
  2. GBPJPY
  3. GBPAUD
  4. GBPCAD

*To protect our traders’ interest, not all pairs and details will be discussed in this post.

GBPCAD

Since May 2017, we have seen price fell in a 5-wave structure. According to Elliott Wave Principle, we will be expecting a retracement or a potential reversal after the completion of a 5-wave structure.

In addition, price action has been ‘crawling’ down since mid July 2017, with a divergence forming. All these gave us the confidence and confluence that there is a very high probability of seeing a retracement or reversal to the upside.

GBPAUD

This setup was more direct as compared to the setup on GBPCAD. Price has recently broke above the downtrend structure mid September with an impulsive move to the upside. This gave us a bullish directional bias on GBPAUD.

Following the impulse move, we saw a minor corrective move prior to the BoE Rate Statement. Though minor, there was a clear 3-wave structure within this corrective move, thus giving us the confidence in taking a long setup trading the BoE Rate Statement on Thursday.

GBP MOVEMENT AFTER BOE RATE STATEMENT

Trading the BoE Rate Statement was an easy one as we captured more than 400 pips from this risk event.

GBPCAD

GBPAUD

A thank you note from our student Edwin who caught an easy 130 pips from the market too!

Trading and profiting from the currency market can be kept simple and easy once you understand the various potential scenarios in the market, and how price develops.

Join us in our next Alpha Play Weekly Traders Meetup

25th September 2017

A free weekly meet-up where Alpha Play coaches share our outlook on the current market trends for currencies and how current affairs will affect the financial markets over the short and medium terms.

This information is useful to Forex traders and even non traders curious about currencies trading.

*** There are only 15 seats available so be sure to book yours fast!

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A self-taught trader, Kar Yong was once featured in Channel News Asia’s Money Mind Young Investor. He was also featured as a Social Guru on the eToro social trading platform where he led the path for more than a thousand traders in confusing market conditions by sharing his trading strategies through forums and blog posts. Today, he teaches his proprietary 4 Pillar Forex Trading Strategy to students from all over the world.

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