While I’m still looking for more forex opportunities, I’ve decided to take profits on my GBP/USD trade and move my stops on my USD/JPY position. Take a look!
Original Trade Idea: GBP/USD’s Downtrend Retracement
I’m on the lookout for new trade setups! As I mentioned in my initial trade idea, I believed that the BOE’s increasingly dovish stance would weigh on the pound against the dollar. The past couple of trading sessions were promising for the short trade, too, as the possibility of a Brexit further weighed on Cable.
Despite this, I decided to close my short position around the previous lows. See, I noticed that there’s a bullish divergence on the 4-hour chart right when the pair is testing (and so far failing to break below) the previous lows that we’re looking at. I chose to take profits now and lock in gains instead of losing them if the bulls decide to step in. After all, I can always enter at a downside break if the fundamentals are still valid by then.
Since I placed a super wide stop loss and only managed to enter 0.25% of my account (the other order didn’t get triggered), I’m pretty happy about my +429 pips resulting in a 0.14% gain. Not bad for someone whose goal is to just take trades this year!
Original Trade Idea: Will USD/JPY’s Downtrend Continue?
Like in my Cable trade, I have also shorted USD/JPY at a retracement. Unlike in GBP/USD though, I have chosen to keep my position open. Right now I only have 0.25% of my account in an open trade but I’ve already secured a couple of pips by adjusting my stop loss down to 114.10 (I entered at 114.50). I figured the adjusted stop loss is pretty safe above the falling trend line and 100 and 200 SMAs on the 1-hour time frame. Fingers crossed for more yen gains!
What do you think? Is there enough room for more USD/JPY losses? How about GBP/USD’s downtrend? Let me know if you have any tips you could share or if you have open trades on these pairs yourselves!
P.S.: Remember to never risk more than 1% of a trading account on any single trade and to adjust position sizes accordingly. Create your own ideas and don’t follow what I do. Better yet, read the Risk Disclosure!