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.
Original Trade Idea: Technical Forex Short on EUR/GBP
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.