Forex Trade Review: GBP/NZD Long

Here’s a quick forex review on my GBP/NZD trade that I decided to close today on recent broad Kiwi strength and ahead of today’s FOMC event.

Long GBP/NZD

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

GBP/NZD 1 Hour Forex Chart

GBP/NZD 1 Hour Forex Chart

Since the Reserve Bank of New Zealand cut the official cash rate last week, we’ve see broad Kiwi strength (one of the reasons I decided to buy a little NZD/CAD), likely profit taking after a big drop in 2015 so far.  This was apparent in GBP/NZD price action as well as the pair has made lower “highs” in the last couple of weeks.  I decided that the market was on the side of the Kiwi and thought today’s pullback higher was a good opportunity to step out for now until the Kiwi’s strength slows down.  I closed both of my long positions manually at 2.3377 on the change in Kiwi sentiment and ahead of today’s FOMC decision.

1st quarter: -23 pips
2nd quarter: +177 pips:
Total: +77 pips avg./ +0.08% gain

The technicals on the original four hour time frame still looks interesting for a long position, but for now, I’ll look for the pair to finish up its downward grind before considering another long position.

That’s if for now, and that leaves me with my previously mentioned long NZD/CAD position and my short EUR/GBP, which I rolled down my stop to .7100 (adjustment shared on my Twitter and Facebook pages) to lock in a small profit. Stay tuned for further adjustments and updates on new trade ideas!