Double whammy! I chalked up another loss on this GBP/NZD forex trade setup as price surged past the support-turned-resistance zone I marked on the 4-hour chart.
Thank goodness I only risked 0.5% of my account on my short entry at 1.9700 and I decided against adding to my position at 2.0000!
You see, as I mentioned in my GBP/NZD trade idea entry, I shorted at the worst possible price since I was afraid that I’d miss out on the entire move. I planned on adding on a pullback to the 2.0000-2.0100 levels to get a better average entry price, but I wasn’t able to get the confirmation I had been waiting for.
It seems that the bearish impact of the BOE’s shift to a more cautious stance has already faded on this pair, as New Zealand is facing its own troubles as well. Earlier this week, the Global Dairy Trade auction revealed another drop in prices, which might continue to weigh on the economy.
Here’s how my trade turned out:
P/L: -500 pips / -0.5%
With that, I’m looking at back-to-back losses with my previous EUR/CAD short trade so I’m really hoping to be able to bounce back! Got any tips?
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