No luck on my forex trades this week as I didn’t get the volatility I hoped for in GBP/JPY and the textbook resistance set in GBP/AUD didn’t pan out.
Original Trade Idea: Forex Trade Idea: GBP/AUD Short-term Downtrend
Looks like my textbook resistance setup on GBP/AUD turned out to be a dud as the market slowly broke above 2.1200 and continued its march higher. This is likely on a combination of positive U.K. data points (public sector borrowing and retail sales) and pressure on the Aussie due to China concerns. Whatever the case may be, my stop was eventually triggered at 2.1450 for a very small loss:
Total: -250 pips/ -0.25% loss
The only thing I probably should have done differently was to close out early on those two occasions where the market was not able to break back below 2.1200 highlighted on the chart above. It was a pretty clear sign sellers were no longer in control, and that I could have got out for an extremely small loss or possibly even breakeven.
Original Trade Idea: Forex Trade Idea: GBP/JPY Consolidation Breakout?
This was my event trade of the week to play a potential jump in volatility off of an upcoming catalyst on a consolidating market in Guppy. Well ahead of the impending U.K. retail sales event, my short order was triggered at 184.50 (which cancelled my long orders at 185.75) and stopped out at 185.50 for a very small loss.
Total: -100 pips/-0.25% loss
It looks like I was too early to place these orders, which at the end of the day didn’t matter too much because we didn’t get the big spike in price as we did the last time this event came around. But I probably wouldn’t have been triggered on the short side, which would have saved me from a small loss, and my long orders would have been triggered to put me into a slightly profitable trade at the moment.
Overall, both setups were solid, but they just didn’t pan out as I was too early with placing my orders in GBP/JPY and I could have managed my GBP/AUD a little bit better. Fortunately, they were both tiny losses so I can live to learn from my losses and hopefully not repeat them in the future. That’s it for now. I’m going to take the weekend early to reflect, recharge and get ready to bounce back next week. Good luck and stay tuned!