GBPUSD tip
Ok, we know the BoE are meeting. We also know that there is an outside chance that they cut rates. Here is a way to get prepared for the unexpected
In this instance then it can often be sensible to put in a sell on stop order about 25-30 points below pre-release price.
- If the rates are cut, you are in at a good price
- If the rates are not cut, you usually have time to cancel your orders straight away.
Remember, it does not work so well for buy on stop orders as you are much more likely to be triggered in with the widening stop around releases. Also, this works best with the major pairs that have the best value spread.
Of course if the BoE do cut rates plenty of sellers will simply enter at market.
