Partner Center Find a Broker

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.

GBP/NZD 4-hour Forex Chart
GBP/NZD 4-hour Forex 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?


Happy time

Other Popular Articles:   

Comdoll Trading Kit GBP/NZD TradeWhat is the STA strategy?Q3 2014 in Review

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.