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I’ve decided to finally book profits on this short Cable position to avoid potential losses during the U.S. retail sales release. Here’s how it turned out.

Short GBP/USD Trade Idea

I entered this trade on what appeared to be a small pullback from the post-Brexit selloff (Yep, I know that seems like ages ago!) but it turns out the pair was actually starting to form a symmetrical triangle pattern back then. I held my breath when price climbed close to my stop loss above 1.3500 but fortunately GBP/USD made its way back down to the 1.3100 support.

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

Cable moved mostly sideways for a couple of weeks before the BOE decision came along and triggered a sharp selloff for the pair, eventually pushing for a break below the triangle support and bringing my trade positions back in the green. When price was already nearing the lows at the 1.2900 handle, I thought it was time for me to take whatever profits I had before top-tier U.S. reports were released.

The U.S. retail sales figures came in below expectations, causing a slight pop higher for Cable on Friday and weighing on Fed rate hike forecasts for this year. I’m still bearish on the pound because of the BOE’s policy bias but I think I might be better off shorting the British currency against a different counterpart.

Here’s what I ended up with:

P/L: +87.5 pips / +0.06%

I know it’s not much and I could think of a bunch of ways I could’ve played this setup better, but I figured it’s time for me to shake it off and reset my market thoughts for now. 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 Q2 2016 Blog Trading Performance
Pipcrawler’s Favorite Trading Books

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.