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I’ve decided to cash in on my winnings for this one as the tide seems to be turning in favor of the Canadian dollar. Here’s what I ended up with.

Long GBP/CAD Trade

I had my one good eye on the long-term double bottom breakout, which signaled that the pair was in for plenty of upside. I was able to hop in at 1.8075, just above the neckline, and set my sights on a huge profit target near the 1.9000 handle.

However, U.K. CPI readings turned out to be disappointments, leading many to speculate that the upcoming BOE decision might be a less hawkish one. At the same time, the Loonie got a boost from positive remarks coming from both Canada and the U.S. when it came to NAFTA talks.

GBP/CAD Daily Forex Chart
GBP/CAD Daily Forex Chart

Because of that, I decided to jump out early and take profits at the area of interest around the 1.8400 handle. Whether I’d regret this decision later on remains to be seen, but I am still hoping to be able to catch another quick pullback on this pair if longer-term fundamentals stay unchanged.

I was feeling uneasy about holding on to this position during this week’s BOE decision anyway since these top-tier events tend to be a downer when expectations are running too high. Of course I do stand ready to jump in on another upside break as well if Carney steps up his hawkish hints.

For now, here’s what I got:

P/L: +300 pips / +0.375%

Not so bad, eh? I had a pretty wide stop on this setup since I was watching the daily chart, so my percentage gains aren’t so sizeable. I’ll probably maintain this same structure if I reenter, and I’ll keep y’all posted!

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