GBP/AUD Trend Play: New Strategy – Took Profits!

Trade Update: 2013-06-18 10:05

Last week I saw that GBP/AUD had failed to reach my original orders at 1.6250 before it bounced from the 200 SMA. Because I didn’t want to miss on a potentially good move, I entered at market (1.6383) with my stop loss at 1.6211.

GBP/AUD Trade Update

In hindsight I probably should have waited for price to hit my orders. I could have also waited for another retest of the 200 SMA. In any case, price eventually dipped to 1.6250 before shooting higher. Good thing that I had a pretty accommodative stop loss size!

Now, thanks to the RBA minutes’ bearish tone, GBP/AUD popped higher and reached my profit target for a 1:1 trade. Not bad for a trade that’s mostly based on a new indicator, I think.

Fingers crossed for another winning trade this week!

Trade Idea: 2013-06-13 07:25

Desperate times call for creative measures!

After getting burned by my AUD/USD, AUD/JPY, and CAD/JPY trades, I’ve decided to look for trades on pairs that I don’t normally look at! Not only that, but I also added the 200 SMA on my trading tools! Without further ado, here are my reasons for buying GBP/AUD:

GBP/AUD Trade Idea

Technicals:

  • Price could possibly encounter support at:
    • Bottom weekly ATR (1.6292)
    • 1.6250 minor psychological area
    • 38.2% Fib retracement on the 1-hour chart
    • 200 SMA (pink line) that has been intact since April 2013
    • Previous resistance
  • Stochastic looks nearly oversold and ready to go up

Fundamentals:

  • Australia’s employment numbers might have surprised to the upside, but a closer look reveals that the increase in jobs is due to part-time employment eclipsing the decline in full-time employment. Westpac Institutional Bank also revealed that the jobless rate’s decline from 5.6% to 5.5% is mostly due to the fall in participation rate rather than creation of jobs.
  • Meanwhile, the U.K.’s claimant counts unexpectedly fell by 8,600, its seventh consecutive decline and its lowest level in two years. Booyah!

Here’s my plan:

Buy at 1.6260 with my stop loss 170 pips away (that’s a ½ WATR move). I’ll place my profit target for a 1:1 trade although I’ll keep close watch on the pair to move my stop loss to BE as soon as I can.

As usual, I’ll risk 0.5% of my account and recommend you to read the risk disclosure if you’re planning on taking this trade with me.

I’m pretty excited about this one! What do you think?

Happy time

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  • Pipsters

    I don’t know, trading a new pair, new strategy i think it could work out but it could also burn you even more. Good luck

  • LordC

    Hi there, sounds like an interesting plan. I’m new to this and would like to experiment with your proposal. How soon do you expect it to drop to 1.6260 (or near enough)

    Thanks, and good luck!

  • LordC

    Any luck? Thank you for the heads up:)

  • noseypip

    I wont long it under 1.6475
    best wishes