I think it’s about time I called it quits with this one as the pair seems to be eyeing further downside. Here’s how it all turned out for my GBP/AUD long position.
In my trade update yesterday, I mentioned that I was having second thoughts about keeping this long trade open since price has been unable to sustain its bounce off the channel support. Instead, the pair kept consolidating below the 1.7500 handle, hinting that buyers are losing steam.
The pair eventually edged below the ascending channel support I was looking at, so I decided to make some adjustments and stay on the lookout for signs that I should close early. I figured that a move below the short-term support around 1.7350 would mean that bearish pressure is picking up.
Recent headlines from the U.K. contributed to more pound weakness, leading traders to shrug off the positive vibes from last week’s set of upbeat economic reports.Instead, all the attention is now on the upcoming snap elections and Brexit negotiations, with the Manchester Arena blast adding to the uncertainty.
Because of that, I decided to exit early and close my position at 1.7340 in order to trim my potential losses.
The tech setup has already been invalidated anyway, so I think it’s time for me to reassess my biases and move on to a new setup.
Here’s what I ended up with:
P/L: -165 pips / -0.35%
As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups.
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