Forex Trade Review: GBP/NZD Short

My decision to stop-and-reverse on GBP/NZD worked out nicely, but it looks like 2.35 continues to be strong support. With NFP & the weekend coming up, decided to close and take profits.

Long GBP/NZD

Original Trade Idea: Forex Trade Idea: GBP/NZD Long

GBP/NZD 4-Hour Forex Chart

GBP/NZD 4-Hour Forex Chart

It looks like it was a good call to reverse my position as the British pound weakness continued. Plus, we just had a shot of positive sentiment for risk and the comdolls after China PMI beats in September. Unfortunately, the momentum came to a halt when GBP/NZD ran into the major psychological level of 2.3500, where the pair bounce mightily back to the 2.36 handle. With the NFP report coming up to potentially influence broad risk sentiment, and to avoid weekend risk, I closed my position manually at 2.3617 to lock in a small profit.

Long position: -80 pips
Short position: +303 pips
Total: +223 pips/+0.34% gain

With a little luck, I managed to turn a loser into a winner, which goes to show that flexibility to the changing market conditions can work out. Overall, I’m still bearish on the pair for now, but I will wait until next week before coming up with my next move on GBP/NZD. Until then, trade safe and have a great weekend!

  • Jerpell

    Don’t fool yourself….Its all guess work…Now and then we all get a lucky one!

    • Cyclopip

      haha very true in that it’s all guess work. No one can tell the future so the best we can do is understand the situation as best we can and make sure our risk management plans our sound. From that point on, it’s up to the markets and how we adapt to them.

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