Update: Long GBP/USD at 1.6450

Remember that long GBP/USD setup that I was so excited about last week? Well, it didn’t end up in my favor after all.

GBPUSD

I hope your stop losses were a bit wider than mine! Last Monday GBP/USD got burned during the London session as it fell sharply despite the lack of tier 1 catalysts from the UK and the US. In fact, price had only dipped about 3 pips below my stop loss level before it went back above 1.6400. I guess a lot of traders (and brokers) were simply looking at the same levels, huh?

I personally think that the trend is still intact although I’ll have to get more creative in placing my entry and stop losses if I re-enter this trend again. For now I’m looking at a 0.50% and 100-pip setback from my account. Nothing big, but I really have to place wider stop losses next time.

How about you? Any luck trading Cable this week?

XOXO,

Huck

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  • doniks

    I didnt trade this but I would have placed my stop loss just a few pips lower than the previous low somewhere about 1.6330.

    • Hucklekiwi Pip

      Yeah that level would have allowed me to at least adjust my risk before the pair broke the trend line. :)

  • Booty

    I got stopped out twice on Cable the last 2 Days, so for now, i focus on other Pairs as the Price Action is a little bit to choppy.

    • Hucklekiwi Pip

      Yup, it’s too choppy for clear trend trades (at least in time frames lower than the daily) for now. Maybe it’s time to consider quick day trades until more tier 1 reports are released?

  • Joey

    Hey Huck!

    I noticed that on my 4HR chart for the Cable, another large Bearish Engulfing Bar has printed and pushed price below the .6400 psychological handle and previous support and resistance. I still see a possibility for an uptrend, but to me this looks like a classic 1,2,3 pattern in price action indicating a reversal. Go long with caution!

    Safe Trading,
    Joey

    • Hucklekiwi Pip

      Good call about going long with caution! It looks like it’s not going anywhere above 1.6500 at the moment. The 1.6400 handle is holding as a strong support though.

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