Forex Trade Review: GBP/JPY Short

No luck on my Guppy short thanks to a shift to positive risk sentiment and bullish commentary from the Bank of England meeting minutes.

Original Trade Idea: Simple Short Forex Play on GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

It looks like the downtrend Guppy has been on since February with the recent upside breakout moves. The latest breakout came after the Bank of England released it’s most recent meeting’s minutes, which many took as “hawkish on interest rates and inflation.”  This is the event that gave the final push higher in Guppy to my stop level at 179.50, taking me out of my short positions (entered at 176.16 and 177.60) for a small loss.

1st half: -334 pips
2nd half: -190 pips
Total: -262 pips avg./ -1.0% loss

Overall, it was a decent setup for what seemed to be a turn towards global risk aversion, but as with anytime in the markets, anything can happen. And it just so happens with central banks doing whatever it takes to prop up global economies and fight deflation, taking a risk-off stance may be the low probability bet for now, until we get a really, really bad catalyst.