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If you’re happy and you know it claps your hands! Clap, clap!

Thanks to interest rate hike speculations and a very positive nationwide house price index, GBP/USD broke of its range and rallied strongly.

I was able to hit my profit target and walk away with a respectable 0.86% profit!

After that breakeven trade in EUR/USD, coming out with a win sure does feel great!

GBP/USD 1-hour Chart

Now, now, I don’t want to get too excited. In retrospect, I believe I could’ve walked away with an even bigger win if I was more aggressive.

I could’ve had a better reward-to-risk ratio if I had a tighter stop and added to my already-winning position! I’ll do better next time, I promise.

Here’s a brief rundown of what happened:

Closed half at 1.6107: +61 pips
Closed the other half at 1.6150: +104 pips
Total gain: +165 pips / +0.86%

Trade Idea

GBP/USD 1-hour Chart

Thanks to positive reports from the U.K. and a little bit of risk appetite, my buy order on Cable was triggered.

So yeah, I guess that means I’m gonna root for the pound now, even if Prince William didn’t change his mind and decide to marry me instead. -tear-

Hah! Kidding!

Anyway, back to my trade.

There are still a lot of event risks on the forex economic calendar. Aside from the housing report from the U.K. that I mentioned in my blog post yesterday, I also feel a little bit scared that the Irish stress test results would spark risk aversion.

So, instead of holding on to my trade all the way to my profit target, I decided to play it safe and close half my position at 1.6107.

To make my trade even safer, I moved the stop of my remaining position to my entry point. That way, I’ll be assured that no matter what happens, my trade won’t turn into a loser and I walk away with a profit!

Just to make things clearer, here’s a recap of what I did:

  1. Went long GBP/USD at 1.6046 with the pt at 1.6150 and the stop loss at 1.5950
  2. Closed half my position at 1.6107
  3. Moved stop to 1.6050 while still gunning for 1.6150

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.