GBP/USD rallies hard on the new UK Election news and shot up around 500 pips.
When Theresa May made the announcement in the House of Commons, GBP/USD shot up like a bullet.
When it comes to trading currencies, you should take the speeches made by Presidents and Prime Ministers seriously.
There was a buy signal on Friday. I opened the trade with a small stop loss.
Market moves on Tuesday when Theresa May made the speech.
So when it comes to trading currencies, you should be patient.
Always make sure that you keep risk as small as possible.
I have written this blog post in which I tried to predict GBP/USD using AR model as well as GARCH model.
AR model has some predictive capability. However GARCH model fails miserably.
