Boo yeah! Another winning trade! Just a few hours after I posted my earlier update, GBP/NZD dipped all the way down to my profit target at 2.0675. If you’re wondering how I spotted this setup, make sure you read my initial idea first.
I zoomed in to the past couple of months of price action to show y’all how it turned out. I was able to short at 2.1475 around the top of the wedge and the 61.8% Fib then I adjusted my stop below breakeven to protect my profits as price went further south. You see, I didn’t want to leave it all up to chance since there was a speech from BOE Governor Carney and the Chinese PMI lined up.
Fortunately for my trade, the downbeat U.K. current account balance was enough to bring GBP/NZD down to the previous lows near 2.0650. As it turned out, the economy saw a much larger than expected deficit of 32.7 billion GBP, overshadowing the small positive revision in its Q1 GDP.
Here’s how my trade turned out:
P/L: +800 pips / +0.58%
I’m pretty happy with how this trade went, as I actively managed the trade and made regular adjustments along the way. I was a bit worried that the recent RBNZ cut would dampen demand for the Kiwi, but it looks like risk appetite reigned supreme in this case. Stay tuned for my next setups!