Forex Updates: GBP/USD Breakout and USD/JPY Range Trades

It’s a brand-spankin-new forex trading month and I’m feeling aggressive! Here are my adjustments to last week’s trade ideas. 🙂


Last week I was forced to close an open GBP/USD trade ahead of the FOMC statement. Then I decided to enter again when the event failed to rain on the pound bulls’ parade and Cable actually looked like it would break above the 1.7000 major resistance. I decided to risk 0.50% of my account at 1.7030 before the end of the week.

GBP/USD 4-Hour Forex Chart

GBP/USD 4-Hour Forex Chart

Adjustment: Since price is now about 130 pips away from my entry, I decided to move my stop loss to break even. Think I should add another position?


Pulled the trigger on this one! Last week I had marked USD/JPY’s 101.30 range support area as a must-watch-closely-or-else-you-don’t-get-pips setup. Luckily, I was around when price had not only bounced from the exact level, but had also broken above a small consolidation on the 4-hour chart.

USD/JPY 4-Hour Forex Chart

USD/JPY 4-Hour Forex Chart

Adjustment: I risked 0.50% of my account at market (100.59) and placed a 100-pip stop with a tentative target at around 102.75. Fingers crossed that this works out! Feel free to talk to me in the comments section below if you have any questions or tips! 🙂



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  • Daren

    Hi Huck
    I am very new to Forex and have just completed pipschool and have started demo trading at the moment and purely trading GBP/USD so am following your blog with interest. I was finding it easier to trade retracements on this pair until the current breakout. Did you know in advance this would be a strong breakout and if you did how did you know? Many Thanks D.

    • Hucklekiwi Pip

      Congrats on completing the School of Pipsology!

      I absolutely did not know that Cable was going to break out for sure. However, I did take note that a lot of analysts were talking about the 1.7000 handle.

      And since the pair refused to make any significant retracement despite a couple of weak UK reports, I figured there’s a good chance that the breakout calls would become a self-fulfilling prophecy. I have to admit I didn’t expect that the breakout would be this strong. The bulls must be hungrier than I thought.

      What about you? Any Cable trades open today? 🙂

      • Daren

        Hi Huck
        Thanks for the response in a way am pleased you did not know for sure as at least confirms my own assessment. I have had 5 good trades out of 5 this week so far, so must be doing something right. My system can take the credit for 2 was lucky in 2 others and should have been stopped out in the last but moved it. My total is +40pips so only small amounts. Still developing my trade system but have another job that takes up a lot of time so is a slow process. I still think the Cable has a long way to go my feeling is Carney is indecisive and is not portraying a clear plan or objective for the UK economy and is reacting to conditions around him. I am sure interest rates will go up at some point in the future but will be a reaction to employment figures. It’s only my opinion and may change as my knowledge increases as have a long way to go……….Regards Daren

        • Hucklekiwi Pip

          Glad to hear that you’re willing to take on the challenging task of developing a system even though you have another job. Also, congrats on your trades!

          I have a similar view on Cable. I think that the BOE will raise rates in the future but are unwilling to say it outright to avoid even more rapid GBP strength. We’ll see how it goes. Let me know how your next GBP trades go 🙂

          • Daren

            Managed to get 2 more trades in +8 for the day which gives me +48 for the week. 7 in a row. Have a lot of analysis to do this weekend. Are you still in long with cable?

          • Hucklekiwi Pip

            Yep. I’m thinking of closing for now though, maybe wait for another opportunity to buy.

  • John

    I think the USD/JPY support is pretty solid. Excited to see whether Yellen’s speech tomorrow will boost your setup.

    As for GBP/USD, what’s your target? I’d personally cash in ahead of the NFP, since US jobs data wasn’t bad lately.

    Aren’t you going against your own trade by going short and long on the Dollar at the same time? Are you minimizing the risk for if the Dollar gained volatility? What’s your take on this?

    • Hucklekiwi Pip

      Hey John, thanks for reading my blog. I don’t really have a set target for GBPUSD since we’re dealing with a pretty strong breakout. Good point about the NFP though. I’ll hold off adding to my position until then. For now my stop loss is set at break even.

      I’m okay with hedging my USD trades at this point. I’m basically buying GBP/JPY, which had also just broken above 173.00. Hopefully the pound bulls don’t get tired of buying just yet 🙂

      How about you? Do you have any open trades this week? 🙂

  • Pakito99

    My USD/JPY long position was triggered as 101.40 . Hope that yellen’s speech will be a positive one for dollar.

    • Hucklekiwi Pip

      Yellen’s speech didn’t seem to have much impact on the pair. Luckily for our trades, the ADP report was enough to boost it! How long are you planning to hold your trade? 🙂

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