Broad risk fears continued to subside today, supporting risk assets like the Aussie. This means that GBP/AUD was pulled down to my trailed forex stop and closed me out for a small profit. Here’s a quick forex review.
Original Trade Idea: Forex Trade Idea: GBP/AUD Again!?
Despite bearish data points from Australian early in the Thursday session, it wasn’t enough to keep broad risk assets down. Chinese traders took off for a bank holiday, which means that it was likely traders didn’t have to worry about China’s markets dragging down global risk sentiment…at least for one session. This support the Aussie more than the British pound, which is why GBP/AUD fell from its recent 2.1900 highs to my adjusted stop at 2.1700 to take me out of the trade for a small profit.
Total: +200 pips/+0.12% gain
I’m okay with getting out of this trade, especially with NFP coming up on Friday to potentially shake up global risk sentiment once again. And if the pullback does continue to my original entry area, I will look to play 2.1500 as potential support as the uptrend is still valid with my usual technical framework. Stay tuned!