BoE will reduce key rate?

Hello All!

📉 Long-Term Trading Idea – Short GBP/JPY 📉

On the daily chart of GBP/JPY, a triangle in wave B of a potential zigzag appears to have formed. A breakout below 189.98 will confirm this pattern and could trigger a long-term decline.

📊 Trade Setup:
🔹 Entry: After a breakout below 189.98
🔹 Target Zone: 172.00–177.00
🔹 Expected Duration: 1–3 months
🔹 Risk/Reward Ratio: 1:10

⚠ Fundamental Catalyst:
Tomorrow, the Bank of England will announce its interest rate decision. If the BOE cuts rates, the difference between the UK and Japan’s interest rates will narrow significantly, potentially fueling the expected downside move.

⚡ Conclusion:
If 189.98 breaks and the BOE lowers rates, we anticipate a strong bearish impulse. Stay tuned for the Bank of England’s decision and be ready for potential short opportunities!