Sterling bears came out in force after disappointing poll results, leading the market to invalidate my technical setup on GBP/CHF. Decided to close out early to limit my loss.
After GBP/CHF fell all the way down to my entry order at 1.2650, things were looking pretty good for a while as the bulls did manage to hold the line for about a week. But over the last couple of sessions, Sterling bears took control once again, first after the United Kingdom’s Q1 GDP outlook was downgraded and then today on disappointing election poll results pointed to the Conservatives losing their lead. The consolidation around my entry broke lower, and with the Fibs now broken and even the psychological level of 1.2500 strongly broken, I decided my trade ideas was invalidated and closed my position manually at 1.2469.
Total: -181 pips/-0.45% loss on 0.50% risk
For this trade, probably the only thing I should have done differently was close down the trade after the U.K. GDP downgrade, but with it going from 2.1% to 2.0%, to me it didn’t seem like a sentiment changer. Also, the fundamental divergence was still largely in favor of Sterling over the franc and price action wasn’t in strong sell off mode until the U.K. poll results. At any rate, it’s a tiny hit to the account and I’m moving on to my latest ideas, currently my short NZD/USD and short CAD/JPY plays. Both are currently profitable at the moment and hopefully still in the money after the weekend.
That’s it for now…Stay tuned, good luck and good trading!
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