Here’s a quick review of my successful range play on GBP/CAD from earlier this week. Check it out!
GBP/CAD Range Play
This week, I put up an idea to short GBP/CAD if the pair bounced higher to the top of an established range. I thought that the upcoming data from both the UK and Canada would provide some spark for the pair, and fortunately for me, it all went my way. First with the net positive UK employment data vs. weak Canadian manufacturing data on Tuesday to pop the pair up to my short orders at 1.7250.
Then on Wednesday, the Loonie was able to pick up some gains, likely tracking oil prices as they jumped higher and on better-than-expected monthly Canadian CPI data. This took GBP/CAD lower on a one way ride, to eventually trigger my max target on Thursday at the previous swing low (1.7130) to close out my trade for a nice short-term gain:
Total: +120 pips / +0.55% gain on 0.50% max risk
Overall, a solid setup that worked out thanks to the fundamentals lining up for me. I probably could have been a little more conservative with my entry by setting the short orders at 1.7300 to get a bigger payout, but I’ve missed a lot of solid trades in the past with that kind of mentality. And I probably could have been more aggressive with my max target, but again, I only wanted this to be a short-term trade that didn’t go beyond this week.
What do you guys think of this trade? Were you able to catch quick pips on the momentum lower as well? Let me know in the comments section below!
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