I caught a lucky break with my trade thanks to the positive U.K. retail sales data! Before the weekend hit, I closed my trade to avoid weekend risk and lock in some profit!
Not much movement for most of the week after my orders to short EUR/GBP at .8320 were triggered. The pair danced around my entry level until we got a pretty big surprise from the U.K. retail sales data today; the headline m/m number came in at +2.6% vs. the forecast of +0.3%–whoa! It’s another indication of the crazy economic strength the U.K. is experiencing at the moment, persuading traders to load up on more British pounds.
The initial drop was about 60 pips on the event, with the pair hitting lows around .8235–a few pips from my profit target. Since I didn’t get a strong break of my profit target and with the weekend approaching, I decided to close my trade to lock in profits and avoid weekend risk manually at .8244.
Total: +76 pips/ 0.91% gain
In hindsight, I could have done two things differently: 1. I should have seen the setup sooner and set orders at the top WATR level to improve my entry. 2. Ahead of the U.K. retail sales event, trail my stop and set another sell stop order below market in case the data/reaction did go my way. I knew this was an event that usually sparks big volatility, so it was a missed opportunity to increase my max profitability on this trade. It’s the little details that can make a big difference in your end results.
Overall, this was a textbook trend retracement play that was a winner, but could have done better with my entry and trade management had I thought a bit more ahead.
That’s it for me this week. Thanks for checking out our blogs…have a great weekend!