Forex Trade Review: Triangle Breakout on GBP/USD?

I love the smell of pips in the morning!

Original trade idea: Triangle Breakout on GBP/USD?

Early today the Mark Carney and BOE friends dropped bombshells in the markets. Not only are they expecting the economic slack to be absorbed at a faster rate than initially expected, but they also said that they’re surprised that not many analysts are expecting a rate hike this year. Could they be any clearer about their hawkishnes?

GBP/USD 4-Hour Forex Chart

GBP/USD 4-Hour Forex Chart

Surprisingly, the pound FELL across the board at the report’s release. My buddies Pipcrawler and Cyclopip believe it’s because traders are now bracing for the next potential market mover – the FOMC minutes. Word around the hood is that Janet Yellen would give Carney a run for his pips in terms of economic optimism.

In any case, I have decided to close my position for a 107-pip gain equivalent to 0.53% of my account ahead of the FOMC statement. Not bad for a couple days’ worth of trade! I’m still fundamentally bullish on the pound (who wouldn’t be?) so I’ll also watch closely for another chance to enter a long trade.

Let me know if you have ideas on potential entry opportunities!

P.S. You can contact me via @LoonieAdventure on Twitter and the Loonie Adventures Facebook page if you’re having trouble commenting.

Thanks and have a great trading day! :)

Huck

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  • HutchPod

    Excellent trade!!

    I actually took the BOE minutes as less hawkish than markets expected. But totally agree this is further pushed by expectations of Fed remarks today.

    • Hucklekiwi Pip

      Thanks! Are you still in your GBP/USD trade? I’m thinking of adding to a position I entered at 1.7030. What do you think? :)

  • http://www.keytomarkets.com Fumagalli Key to Markets

    Nice Analysis,

    I’m still waiting a max. at 1.7042. I think a test there, is likely to happen soon. That is an interesting level to set a take profit for the long positions or to try to gain further pips with the bounce back. I suggest to wait before re-opening the long position if you have already close the trade. I would rather wait the break out confirmation.

    Have a nice day!!!

    Fumagalli Key to Markets

    • Hucklekiwi Pip

      Thanks for your tip! I did wait for another bounce and entered at 1.7030. Are you in a long trade yet? :)

  • Mike S

    I wonder if it’s the fact that rate increases will more than likely be gradual.

  • dharmesh

    with inflation @1.5 .not expecting any rate hike

    • Hucklekiwi Pip

      With Carney’s hot and cold statements lately I don’t think they’re expecting one anytime soon either :)

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