Trade Review: Watching GBP/CAD for the BOE Decision

So much for that GBP/CAD short! The pair did move in my trade’s direction but my adjusted stop loss was hit on that Loonie selloff. If you’re wondering what I’m talking about, don’t forget to check out my initial GBP/CAD short idea.

GBP/CAD Short Trade

I was a bit late in shorting this pair, as I missed the range resistance test at 1.7500 and opted to hop in on a break of a short-term rising trend line. I was able to get in at 1.7175 for 0.25% risk then I planned on adding another short position on a higher pullback.

Price barely looked back from its dive so I thought it would be headed all the way down to the 1.6700 range support. Because of that, I decided to add another short position below 1.7100 trail my stop to entry. As it turned out, Loonie bears came out to play upon seeing downbeat reports from Canada and on lower odds of an OPEC deal this week.

GBP/CAD 4-hour Forex Chart

GBP/CAD 4-hour Forex Chart

With that, my stop loss at 1.7175 was hit on a sharp pullback yesterday, as BOC Governor Poloz also highlighted the risks facing the Canadian economy during his testimony. Even though I managed to minimize my losses on this one, I still can’t help but wish that I had been able to lock in more gains around those lows at 1.6900.

Here’s how it turned out:

P/L: -37.5 pips / -0.02%

I’m still bearish on the British pound but I probably have to look for a better comdoll to short it against. Maybe the Australian dollar?

Got any comdoll trade ideas you’d like to share? Post ’em right here! And don’t forget to check out our risk disclosure when taking any of these setups.

Cheers,

Happy

See also: Q2 2016 Trading Performance Review