Trade: Long GBP/USD at 1.6450

Are you ready for another year of trading? I know I am!

As I mentioned in my Q4 2013 trade reflections, I’ll work on sticking to my system’s strengths and maybe risking a bit more per trade.

GBPUSD

This is why I’m planning on jumping on GBP/USD’s uptrend. The pair has been riding on a rising trend line since mid-November and has recently tested the 100 and 200 SMAs. On the fundamental side, I believe that the recent disappointments in manufacturing reports are temporary and that overall economic outlook for the UK is still bullish.

So here’s my plan. I placed an order (worth 0.50% of my account) at 1.6450 with my stop loss 100 pips away and below the SMAs and the trend line. I would have loved to enter at market but the MPC rate decision is just a few hours away and I’d like to give the pair some room. I don’t have a profit target yet but I’m looking for new highs. What do you think?

XOXO,

Huck

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14 comments

  1. ForExchange

    Hi!

    I am long on 1.6466 and hope that your analysis are right!

    I also went long on the US Oil now. Can you maybe right a couple of sentence what you think on that trade? No one ever writes about oil, gold and silver (I do not mean the Comdoll currencies).

    Thanks and good Luck

    Reply
    • Hucklekiwi Pip Post author

      Cool! I got triggered by the MPC brouhaha a while ago. I don’t look at oil often so I’m probably not the best person to write about it. Your best shots would be Pip Diddy, Happy Pip, or Forex Gump

      Good luck to our trades! ;)

      Reply
  2. Ahmed Osama

    Good analysis, I hope you gain a lot from this trade.
    Could you please advice with resist line or turn point?

    Reply
    • Hucklekiwi Pip Post author

      Thanks! I can’t really give advice on specific levels but right now I’m personally looking at this year’s highs (1.6660 area) as profit target. Next is 1.6700 (2011 and 2009 resistance levels). :)

      Reply
    • Hucklekiwi Pip Post author

      Yep I kept it open and so far I’m still ahead by a couple of pips. Good thing my stop loss was wide enough to weather the NFP storm! How about you? Did you keep it open?

      Reply
  3. Joey

    Hi Huck!

    I noticed that if you back out to the daily charts, you can see that a very large and obvious Bearish Engulfing Bar has formed at a past resistance level from back in August of 2011. The trend is your friend, but this may be something to look out for, in my humble opinion.

    Happy Trading,
    Joey

    Reply
    • Hucklekiwi Pip Post author

      Hey Joey,

      Looks like the level was also a pretty significant resistance back in 2009. I’ll think about lightening my risk around the area in case we see hesitation in the candlesticks.

      Thanks for pointing it out!

      Reply
  4. Pingback: Update: Long GBP/USD at 1.6450 | Forex Blog: The Loonie Adventures of a Forex Noob

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