Trade Update: 2013-04-26 02:53
Woohoo! Back to back wins, baby! Thank goodness I decided to go with the flow instead of anticipating this one because that positive U.K. GDP reading still caught me by surprise. As it turns out, the economy grew by 0.3% during the first quarter of the year, which means that the U.K. was able to narrowly escape a triple-dip recession.
With that, GBP/AUD jumped from the 1.4850 area to the 1.5000 mark as pound bulls breathed a sigh of relief after the release. My buy stop order got triggered at 1.4875 and, within a few hours, my profit target close to the 1.5000 major psychological resistance was hit.
Of course I did get a chance to move my stop to entry when the pair reached the previous highs around 1.4950, as I wanted to protect my recent profits from my AUD/USD short trade. You never know, right?
Here’s how it all turned out:
P/L: 120 pips / +0.94%
I’m pretty stoked about starting this quarter on a strong note! I really appreciate all the feedback you’ve been giving as you guys have been extremely helpful in allowing me to figure out how I can improve my trading. Cheers!
Trade Idea: 2013-04-25 04:12
Yesterday an upside breakout on AUD/USD triggered my adjusted stop loss and gave me a 200-pip win. This time around I’m trading the Aussie against the one of the hottest currencies this week, the pound.
With the U.K.’s potential triple-dip recession trending in the markets, I’m thinking if I should also join the bears and short the pound. GBP/AUD’s technical setup, however, is showing a good incentive for a long trade.
Okay maybe it’s sporting a symmetrical triangle on the 1-hour chart. But if take a look at the 1.4850 level you’ll see that it was a former resistance area for the pair. Not only that, but stochastic is also flirting with the oversold zone.
I guess I’ll just have to wait and see where the U.K. Q1 2013 GDP figure will take this pair. A negative reading could push it down south while a positive figure might trigger an upside breakout. With that, I decided to place a straddle trade on this pair. Here’s my plan:
Short at 1.4825, stop loss at 1.4885, profit target at 1.4705 or
Long at 1.4875, stop loss at 1.4815, then take profit at 1.4995
What do you think? Are you on the buy or sell side? Any tip is always welcome!
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