After sitting on this trade for a couple of weeks, GBP/USD finally managed to get down to my profit target, where I was closed out with a profit. Here’s a quick forex trade review.
Original Trade Idea: Forex Trade Idea: GBP/USD Pullback in Downtrend?
After trailing my stop down to breakeven last week, the Greenback continued to gain on the pound after a slight bounce higher to 1.5100. A big part of the move lower was the broad risk aversion sentiment sparked by geopolitical risk (favoring the U.S. dollar) and weak data from China, the euro zone, and the U.K. And not too long into the new trading week, the pair dipped lower on another round of weak U.K. consumer data during the morning London session, enough to trigger my take profit order at 1.5000 to close me out for a nice profit.
Total: +200 pips/ +0.57% gain
Overall, this was all pretty textbook from the get go in that the Fibs drew in trend sellers and the expectations of weak U.K. came to pass. And now that we’re back to the major psychological level of 1.5000, I’m going back into watch mode for now as we’re likely to see consolidation this week, ahead of this Friday’s NFP event. Stay tuned until then for new ideas and updates!