Long-Term Buy on GBP/CAD – Adjustment

The results of both the U.K. and Canadian events helped lift GBP/CAD much, much higher today.  It’s time to adjust my trade to lock in profits.

Original trade idea: Long-Term Buy on GBP/CAD

Before you move on, for those who are not familiar with my framework, signals, setups, or acronyms, please visit my discretionary trading framework blog.

GBP/CAD 4 hour forex chart

GBP/CAD 4 hour forex chart

As Pip Diddy mentioned in his Pipnoculars post, the U.K. came out with a big surprise unemployment rate number: 7.1% vs. the 7.3% forecast. This was the catalyst for a big British pound rally and not too long into the morning U.S. session, the Bank of Canada held rates at 1.0% but lowers their inflation forecast and says that the Loonie is still strong enough to stay competitive. This provided a further boost higher in GBP/CAD, taking the pair to new highs around 1.8380 currently.

With my trade up over 300 pips, it’s about time that I adjust my stop to lock in some profits.

Adjusting stop from 1.7930 to 1.8230. This locks in 151 pips, or a 0.50% gain.

I’m gonna hold here for now to see if there will be a pullback or a push higher during the Asia session.   If 1.8300 is retest and holds, I’ll look to possibly add to my position there, and if it does push higher, I’ll reassess my stop and the levels where I want to add.  Whatever I do, be sure to stay tuned by following me on Twitter and Facebook!

Don’t forget to check out my short EUR/USD idea as well.  1.3550 seems to be the new battleground that’s keeping the market there like a magnet!  We’ll see how it plays out and if I need to adjust my orders.

Thanks for checking out my blog…good luck and good trading!

 

  • Edward

    Hi, and congratulations on your trade. I use the daily charts. If the bullish run continues, the next resistance area seems to be around 1.8630-1.8650

    • Pipcrawler

      Thanks for your thoughts Edward and for the heads up on those levels. How did you decide they would be resistance levels (i.e., what time frame are you looking at? trendlines? MA’s? etc.)

  • Edward

    Hi Pipcrawler, I simply watch price action using the daily and weekly time frames. I hope you are still in this trade. This is a great buy.