It didn’t take too long after my stop adjustment to get closed out on my GBP/USD short for a small profit. Here’s a quick forex trade review.
Original Trade Idea: Forex Trade Updates: GBP/USD Long
Cable pullback higher from its recent downtrend, likely on a few possibilities including profit taking on broad USD strength and a return to risk aversion, but the likely catalyst was the monthly U.K. unemployment data during today’s morning London session. The October report showed another decrease in the unemployment rate to 5.3%, an increase in wage growth by 3.0%, and an increase in jobless claims to 3.3K. Overall, it was net positive for the British pound, sending pound pairs higher, including Cable which hit my adjusted stop at 1.5146 along the way to close out my position for an overall gain.
1st half long position: -54 pips
2nd half short position: +100 pips
Total: +46 pips/ +0.09% gain
Overall, it was a good idea to stop-and-reverse my position after a new catalyst came out, but I probably should have taken a bigger profit on that move once it ran out of gas, especially ahead of the weekend.
That’s it and with GBP/USD rising higher, I am looking for potential resistance to play this recent return in USD strength, but with the weekend coming soon, I’ll look for new opportunities after a bit more reflection on this trade. Stay tuned!