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Here’s a quick forex trade review of my GBP/AUD trade, which closed out during the Bank of England inflation report release.

Original Trade Idea: Ascending Triangle on GBP/AUD?
Trade Adjustment: Forex Trade Adjustment: GBP/AUD Long

GBP/AUD 1 Hour Forex Chart
GBP/AUD 1 Hour Forex Chart

As I mentioned on my Facebook and Twitter updates, I adjusted my stop to 1.9800 after the weak Australian jobs data pushed the pair higher going into the Thursday trading session. My expectation was that the Bank of England inflation report would be bearish since global inflation continues to be weak, and that the pound would fall as it tends to during this report.

It looks like forex traders expected the same thing as the British pound fell ahead of the release and a few minutes after the release, 1.9800 was tested and I was taken out of my long trade there before the market saw the BOE inflation report as bullish for Sterling.

Total: +300 pips/ +0.66% gain

In hindsight, maybe my stop adjustments were a little too tight for a big mover like GBP/AUD, but then again I was pretty confident the inflation report would be a bearish one for Sterling and I don’t like giving back too many pips once I have a good amount made. Overall, execution was pretty textbook for the string of events that were coming up on me, but the next time I may decide to lock in half of my profits to give upcoming events a little more room to breath.

Besides that, it was a great trade overall and it’s nice to roll into the weekend with a little more extra in the bank.  Thanks for checking out my blog, I’ll see ya next week and have a great weekend!

 

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.