Caught a bit of luck on my GBP/AUD triangle setup with the pair breaking lower & triggering my sell orders. With the weekend approaching, closed my trade to lock in profits.
Original Trade Idea: Forex Trade Idea: GBP/AUD Triangle Breakout?
After posting my original idea, GBP/AUD made its way higher and looked like it was about to make a break for the upside instead of the downside I was hoping for. Fortunately for me, that upside move was limited to the major psychological level of 2.1500 and reversed, possibly with help from a shift into bullish Aussie sentiment that may have been sparked by broad risk-on sentiment and/or USD weakness after the FOMC meeting minutes were released. We also recently got positive comments from the head of economic analysis for the RBA, Alex Heath, that economic growth may be taking a turn for the better, likely with the help of the weak Australian dollar.
What ever the direct catalysts may be, it was enough to push GBP/AUD back lower to break the rising trendline and trigger my short orders at 2.1300. And since this was intended to be a short-term trade–and to avoid weekend risk that is quickly approaching–I decided to take profits by manually closing my position at 2.1150 for a small gain.
Total: +150 pips/ +0.21% gain
Overall, no big explosion in volatility for GBP/AUD, but I did get a nice move and gain to go into the weekend. The pair is also currently testing a previously strong support area, so there may be a bounce next week and I could have an opportunity to short again if the story makes sense. Until then, I’ve still got my short CAD/JPY position and EUR/GBP short orders to watch, as well as reflection and market review this weekend. Thanks for checking out my blog and have a great weekend!