Break and Retest Trade on Cable – Trade Canceled

You know the saying “20 years from now you’ll be more disappointed by the things that you didn’t do than by the ones you did do?” Well, I don’t need 20 years. I don’t even need 20 days. It’s been less than a week and I’m already regretting not pulling the trigger on my GBP/USD trade idea.

GBP/USD 1-Hour Forex Chart

GBP/USD 1-Hour Forex Chart

Last Friday just before the NFP report was released I pointed out a potential buy area around a previous resistance, 61.8% Fib, and a 100 SMA retest. I said that I’d be waiting until after the release before I make any orders. I really thought that GBP/USD would pull back some more when Uncle Sam’s NFP data came out WAY better than expected!

As it turned out, the pound bulls got the 200 SMA area well-protected. The pair consolidated around the 100 SMA while the U.K. was out on bank holiday before it popped higher earlier today. Buying at the 200 SMA area last Friday would have been a good idea. Another good opportunity came yesterday when the pair was hanging out at the 100 SMA zone. Heck, I even tweeted about it!

Since Cable is already 50 pips below my original profit target, I decided to just postpone this trade setup for now. No use forcing a trade when there’s no good reward-to-risk ratio.

I guess I just have to be more confident about my trade ideas and chalk up losses to experience. Really looking forward to making my next trade though. Got any ideas?

XOXO,

Huck

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  • ForExchange

    Hi Huck,

    you should read the book “The disciplined trader”. You have good ideas and analysis but very often you just don’t pull the trigger because of fear. With more self-confidence you could be a lot more successful.

    Best Luck,
    ForExchange

    • Hucklekiwi Pip

      Hi!

      Thanks a lot for the recommendation. I’ll check it out as soon as I can. Hope you’re having a great trading week! 🙂