And I’m in! I was able to catch a bit of bearish momentum after this long-term pullback, but now I’m making adjustments to reduce my exposure.
Short GBP/CHF Trade
I had my one good eye on this daily ascending channel breakdown for quite some time, waiting for a chance to join the selloff on a retest. When I saw that the broken support was holding as a ceiling around the 1.3100 mark, I waited for a bit more momentum to jump in on a move below the 1.3000 handle.
The pair did gain some traction on its southbound direction for a bit, but pound bears returned some pips when it was rumored that a Brexit deal would be ready by November 21. Ugh, not now Mr. Raab!
It didn’t help that SNB head Jordan remarked that the Swiss economy could be one of the worst-hit by a trade war, reviving fears that the central bank might intervene in the forex market to shore up its trade advantage.
With that, I decided to protect some of my winnings by rolling down my stop just slightly below entry. I thought of closing my position right away but figured that the selloff might still have some legs as U.K. officials clarified that November 21 was just a suggested date and not a definitive one.
I’m a bit wary of the BOE Super Thursday events lined up, though, as Governor Carney might seek to provide some reassurance for businesses. Still, any talk of getting contingency plans ready for a “no deal” scenario and any negative forecasts revisions to account for this uncertainty might push sterling back down.
I do hope I can score a big win on this position, but I’m feeling a bit more relaxed now that I’ve made the necessary adjustments. What do you think?
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