Forex Review: EUR/GBP Short Closed

After a strong move to the downside and a top tier event coming up, I decided to close my EUR/GBP to lock in my profit.  Here’s a quick forex review.

Short EUR/GBP

Original Trade Idea: Technical Forex Short on EUR/GBP

EUR/GBP 4 Hour Forex Chart

EUR/GBP 4 Hour Forex Chart

Despite disappointing inflation data this week from the U.K., the British pound seems to have found a bid, recently on Bank of England Governor Mark Carney’s positive comments on the when we may see interest rates change. And of course, we have the Greek debt crisis and uncertainty continuing to weigh on the euro, making it completely understandable why we saw weakness in EUR/GBP recently.

The pair moving my way strongly and now trading just above my initial target, and with the U.K.’s monthly unemployment data coming up, I’ve decided to close out this trade manually (.7040) to avoid event risk and giving back my gains:

Total: +125 pips/ +0.40% gain

Overall, this was another textbook setup and entry, but it won’t be another few days until we see whether or not my decision to close out early was a good one.  For now, I think it was a good decision to lock in profits for now because I just haven’t had the greatest luck going into top tier events. Plus, this small win definitely helps out my confidence, hopefully sparking a new string of winners.

 

  • Krišs Ločmelis

    You nailed it! Good one. Now there should be good opportunities to buy this pair till 0.7230 levels.

    • Cyclopip

      Thanks @krisslocmelis:disqus! I got lucky on this one since the Greek debt story could have really gone any other way. I’m still short biased and it looks like should have held on, or at least hopped back in after the disappointing UK unemployment data. But .7000 is a major psych level so there’s a good chance it could draw in a lot of buy orders. Good luck bud!

  • Jason

    What system is this? very interesting

    • Cyclopip

      It’s a discretionary system, or a mix of both fundamental and price action analysis. Are you brand new to forex trading Jason?

  • Cyclopip

    Congratulations Forzion! Thanks for commenting and hope to see ya around in future posts!

  • Cyclopip

    It’s not a system with hard rules, but guidelines. The two biggest being: 1. trade with the trend and 2. the fundamental and sentiment themes should support your directional bias. In terms of risk management, I start with very small risk (usually between 0.25% – 0.50%) and maxes out at 1% risk per position. Entry/exits are mainly based on support and resistance areas. It’s pretty much the same setup for every trade, so if you look through my trade journal, you’ll see everything I just talked about. Hope that helps Jason!