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Since hopping in short last week, Guppy made a big move lower to give me a profit, even after the broad Sterling rally after Theresa May’s speech today. Time to adjust!

Trade Idea: GBP/JPY Head & Shoulders Breakdown?

GBP/JPY 4-Hour Forex Chart
GBP/JPY 4-Hour Forex Chart

So, if you haven’t heard, the British pound had its best day since 2008 thanks to Theresa May’s highly anticipated speech on the U.K.’s plans on Brexit, and likely helped by a better-than-expected read on the year-over-year consumer prices data.  This pushed GBP/JPY up over 2.00% from the week’s opening price, but the market seems to have stalled around the 140.00 major psychological handle.

Since Asia hasn’t had a chance to price in the London session events, I’m not sure if this stall is just a pause before another leg up or reversal down, so I’m going to be prudent by rolling my stop down to 140.30 to lock in 100 pips in case there is a move higher. This gives me a “risk-free” trade but not a lot of wiggle room, which I don’t mind since the week is not yet over and I’ve got U.K. unemployment data and retail sales data ahead. Both are forecasted to come in weaker than their previous reads which could be great for my trade but I don’t wanna leave any chance of ending up with nothing after a heck of a move lower, so I think locking in some profit is the right short-term call. We’ll just have to wait and see for now.

If you’re trading Guppy with me, as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.

Risk Disclosure
Pipcrawler’s Q4 2016 Blog Trading Performance

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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.