Forex Trade Update: GBP/CAD Bullish Pennant

It’s been a while since I posted an update on my GBP/CAD forex trade but, yep, this one’s still open and going my way! Here are my adjustments for this Super Thursday.

Oh, in case you haven’t seen it yet, make sure you review my initial long GBP/CAD trade idea right here. And if you’re wondering what Super Thursday is all about, you definitely gotta see all these top-tier U.K. events lined up. We’ve got the BOE interest rate decision, Inflation Report hearings, and MPC minutes due!

To lock in some profits ahead of these major event risks, I’ve decided to adjust my stop below the 2.0500 major psychological support and the lowest Fib (2.0480) based on the short-term swing low and high on the 1-hour time frame. That’s 280 pips above my initial entry around 2.0200, which should ensure a nice little 0.15% gain on my account, and could leave me with enough room to add on an upside break past the recent highs around 2.0630.

GBP/CAD 1-hour Forex Chart

GBP/CAD 1-hour Forex Chart

Forex junkies seem to be bracing themselves for upbeat remarks from the BOE, as Carney previously mentioned that they’re moving closer to tightening monetary policy. Some analysts are even expecting to see a 2-7 vote in favor of hiking interest rates in the latest MPC meeting, with the Dissenting Duo (McCafferty and Weale) likely to have voted for a 0.25% increase.

Meanwhile, the downside pressure on the Loonie keeps building up as oil prices are facing further declines. Aside from that, the latest monthly GDP report from Canada indicated a 0.2% contraction for May, marking its fifth straight negative reading and putting the economy in recession for the first half of this year.

I’ll be keeping close tabs on Canadian economic releases on Friday, namely the employment report and Ivey PMI for July. Both reports are expected to show improvements so I’ll be ready to make more adjustments if my long position is still open by then. What do you guys think of my plan?

Cheers,

Happy time

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