Trade Updates: Short GBP/USD and Long USD/CAD

So far so good on my USD/CAD trade, but my GBP/USD position is still going nowhere! Before reading on, make sure you’ve checked out my initial trade ideas first.

Short GBP/USD

Yep, this one’s still open fellas! I wasn’t able to catch a good entry price on this one but I’ve kept it open mostly on expectations of additional easing from the BOE. The U.K. central bank refrained from cutting interest rates in last month’s policy statement but they’ve got another one coming up on Thursday so I’m thinking this could be the time for additional easing.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

As you can see from the pair’s short-term chart above, price is stuck in a symmetrical triangle formation since traders are likely holding out for the upcoming BOE decision. Leading economic indicators such as the PMI reports have reflected a sharp slowdown following the Brexit vote so this might be enough reason for policymakers to pull the rate cut trigger this week.

In that case, I’ll hold on to my short position on a break of the triangle support around 1.3100-1.3150. On the other hand, a decision to stand pat and reassure the markets that the U.K. economy could continue to stay afloat might lead to an upside breakout from the triangle resistance so I’ll be ready to jump ship if that happens.

Long USD/CAD

As for my long USD/CAD trade, the fall in crude oil prices is definitely working to its advantage. My second long order at 1.3025 got filled recently on downbeat U.S. GDP data before price zoomed right back above the 1.3100 mark, bringing my first position at 1.3125 in the green as well.

USD/CAD 4-hour Forex Chart

USD/CAD 4-hour Forex Chart

I’ll also hold on to this position but I’ve decided to trail my stop higher just to protect some profits in case a mid-week reversal happens. Stochastic is still on the move up so I’m positive that price could keep heading north towards the channel resistance at 1.3350 or at least until the previous highs around 1.3250, at which point I’ll likely trail my stop higher again.

That’s all I got for now! As always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.

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