Trade of the week: long GBP/USD
We believe that the recent decline in GBP/USD has run its course and would like to go long cable on a minor dip to $1.3110 with a stop loss at $1.2990 and an upside target in the $1.3500 region.
(Partial video transcript)
This week's trading opportunity
Axel Rudolph: Hello and welcome to "Trade of the week" on Monday 10th November, 2025. Let's get straight into it, and today what I would like to do is look at GBP/USD. And what we can see is that we've come off quite a lot ahead of our Budget in the United Kingdom towards the end of this month, and the market getting worried about how the UK can basically finance everything it wants to do.
So, what we've seen is a weakening of GBP/USD and the US dollar in general, actually, appreciating against lots of other currencies as well. But what we can see here is that, potentially, we might be bouncing back over the next few days. And, for me, it looks as if we've formed a bottom here and that we can head back up again. And if you look at this decline we've seen from the highs seen in the middle of September, this may be just a big ABC Elliott wave correction and we could be heading back up again in the coming weeks.
And that's the "Trade of the week" that I'm planning on putting on here - basically, to go long Cable. Now, perhaps not at current levels, perhaps slightly lower, around $1.3110. So on a retracement, because that would reduce our risk with regards to the stop-loss, which I would place just below the lows we made at the beginning of this month, just below the $1.30 mark, sort of around $1.2990 or something like that.
Previous trading outcomes
Let's now look at the previous "Trade of the weeks". I think we had one which was long the DAX 40 from the 20th October. As you can see on the chart, that one got stopped out, so that one is no longer valid.
Then we had another one which was to go short the WTI crude oil price, in the direction of the trend. That one, I believe, was short from $61.03 or something like that. So, what I would do here is lower our stop-loss from $62.50 to our entry level, wherever that may be for you. For us, I think it was $61.03. So we lower our stop-loss to our entry level, thereby having a free trade on. And we still have our downside targets further down on the chart.
And then this brings me to last week's "Trade of the week", which was to go long gold. And that one worked out really well. As you can see on the chart, the gold price did rise since last week. So we're heading higher. And, I think we went long at $4,013.00. So what we can now do is raise our stop-loss from the low from late October to our entry level, thereby having a free trade on, and perhaps also lower our limit order because it was quite high here at $4,300.00. Maybe we’ll bring that one down towards just below these lows here. Perhaps $4,130.00 or so. So, we are raising our stop-loss to be at breakeven as well on this gold trade.
This week's trade in summary
To summarise the "Trade of the week" for this week, it's to go long Cable, GBP/USD, but on a slight retracement to the downside around $1.3110 I'd like to go long, with a stop-loss at $1.2990, and an upside target probably around the $1.35 area.
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