Forex Trade Adjustment: GBP/AUD Long

Looks like I still have great luck with GBP/AUD since that 2.1500 level did draw enough forex buyers to hold. It’s time to lock in profits ahead of a busy week.

Long GBP/AUD

Original Trade Idea: Forex Trade Idea: GBP/AUD Again!?

GBP/AUD 4-Hour Forex Chart

GBP/AUD 4-Hour Forex Chart

After a strong rally in risk assets over the past few trading sessions, it looks like market players are back in risk-off mode today thanks to another weak showing in China’s equity markets earlier in the Tuesday session. Fortunately for my trade since my long orders were triggered last week, that 2.1500 level did draw in a ton of buyers and now I’m back inline with the overall driving themes we’ve seen for the past few weeks of global growth slowing and broad risk aversion behavior.

It looks like I’ll do well in this trade, but with a busy week ahead for the Aussie and the pound, I’ve decided to lock in some profits this morning.

Trailed stop up to 2.1600 from 2.1100 to lock in a 100 pip gain or 0.12% profit

So, I’ve created a near risk-free trade (black swan events can cause massive slippage) and now it’s time to let the market do its thing on this trade. Overall, I think with the growth issues now in play, this week’s Aussie data is likely to come in weaker and potentially help me get closer to that 2.2200 target. But, if the market reverses, I know I’ll at least come out with a small gain, and potentially another opportunity to play the long side at a lower price again if the story warrants the same play. Stay tuned!