Forex Trade Adjustment: GBP/USD

Just ahead of the weekend, I was triggered into my Cable short, which has worked out so far.  With a heavy week of data ahead, I’ve decided to make adjustments to my short-term swing trade.

Original Trade Idea: Short-Term Swing on GBP/USD

GBP/USD 1 Hour Forex Chart

GBP/USD 1 Hour Forex Chart

It looks like that 61% Fib was a good call to short, but there wasn’t much selling pressure since then as the bulls have held the 1.6735 level pretty well.  The picture is starting to turn into a consolidation pattern instead of a new trend lower, which means it may be time to close up this short-term trade up, especially ahead of central bank events and major U.S. data.

But before I close up shop, there may be one more opportunity for a final push lower with the upcoming U.K. construction PMI data today.  This data has been trending weaker since February, and if we get another weak read, 1.6700 might be doable target before the end of the Tuesday session.  So, I decided to adjust my stop to breakeven at 1.6770 and bring in my take profit to 1.6700, creating a trade with no risk against a potential 0.50% gain.

It’s all up to the market now, so I’ll just sit back and see what happens. Thanks for checking out my blog!