It looks like the odds were ever in my favor on this one, as the pair reached my profit target at 2.1600 before turning back down. Oh, if you’re wondering what I’m talking about, make sure you check out my initial long GBP/NZD trade idea before reading on.
As you can see from the chart above, I was able to go long at the bottom of the channel at 2.1200 (0.5% risk) then I added to my position (another 0.5%) after price broke past the mid-channel area of interest at 2.1400. I also adjusted my stop to my initial entry at 2.1200 then, keeping my risk limited to just 0.5% of my account.
I must admit, I did get a little lucky on this one since the price on my broker’s feed did actually go a tad beyond 2.1600, just barely enough to hit my target. Phew!
Here’s how it turned out:
1st position: +400 pips / +1.33%
2nd position: +200 pips / +0.50%
Total: +300 pips (average) / +1.83%
It looks like the ascending forex channel is still intact though, which might offer another chance to go long at the bottom. Do you think it’s still a valid idea?
Other Popular Articles: