Ugh! So much for that reversal pattern on this pair! GBP/CAD just couldn’t shake off Brexit jitters while the Loonie scored a huge win on the BOC decision.
Long GBP/CAD Trade
I hopped in a long position at market on what appeared to be a neckline break on this double bottom, confirming that another rally was underway. However, the pair soon fell back below this resistance area and ultimately dropped sharply during the BOC statement.
I really should have attempted to cut losses when Brexit troubles just won’t quit. Around the time I entered the trade, though, hopes were still running high that a special Brexit summit would be convened to sign the deal next month.But as recent developments revealed, preps for a “no deal” situation might be underway soon as neither the EU nor the U.K. are willing to back down on their Irish border demands. Meanwhile, BOC hike expectations came into play for the Loonie even as crude oil was taking hits.
I would’ve also been much better off had I exited before the consolidation above 1.7000 broke ahead of the BOC decision. Bah!
With that, I’m sulking off with a 250-pip loss and a 0.5% dent on my account. I did hedge this long sterling play with a short GBP/CHF position, so I’m hoping that one makes up for this loss.
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