With the broken resistance failing to draw in buying support on a retest, I decided to close my position in GBP/AUD and go back into watch mode. Here’s a quick forex trade review.
Original Trade Idea: Forex Trade Idea: GBP/AUD Uptrend
The adjustment to close was mainly a price action decision (no buying support on a retest of broken resistance), with a little bit of economic event risk avoidance thrown in. This week, we’ll get various top tier events from both the U.K. and Australia; most notable is the Bank of England’s Financial Stability Report on Wednesday, and Australia’s trade balance and retail sales data are potential market movers for the Aussie.
The pair nearly reached 2.0700 before giving back the gains, so I already gave back a lot and I don’t feel like giving back more incase the data this week turns our negative for GBP/AUD bulls. So, I decided to closeout my position manually today at 2.0448 to lock in a small profit.
Total: +148 pips on half position/ +0.185%
I’m still a buyer on this longer-term uptrend, so I’m going back into watch mode on GBP/AUD and will see how this week’s events influences the pairs behavior. If 2.0300 is retested and holds once again, I’ll definitely look into taking another nibble trade back into the long side…stay tuned!