I was so over waiting for Cable to get on with its uptrend, so I decided to pull the plug before the BOE’s event.
For those who are just tuning in, you should know that I bought GBP/USD a couple of days ago after it looked like the dust was settling around the latest Brexit headlines. On the dollar’s side, threats of more trouble with North Korea kept a lid on dollar demand.
At the time I bought at 1.3225 after I saw a bounce from the channel that was also supported by the 100 SMA on the daily time frame.
Fast forward to this week and there’s still no sign of the pound popping up to crush the Greenback. For one thing, the possibility of John Taylor – a more hawkish bet than Powell – taking over the Fed caught forex bulls’ attention. And then there’s the Republicans’ tax reform, which lit a fire under the risk-takers and the dollar bulls.
On the pound’s side, expectations of a BOE rate hike were tempered by not-so-awesome economic releases. This led market players to believe that the BOE would pull an ECB and sound dovish even as they make moves to tighten their policies.
As a result, GBP/USD was stuck in a fierce tug-o-pips. And since I’m not feelin’ the love for trading a major event such as the BOE’s decision, I repeated my decision from my last USD/JPY trade closed the trade a few hours before a major event.
Here’s the deal:
Closed at 1.3255 for a net of +30 pips (+0.05%)
Not a bad deal overall, imo. What I could have done better is to call it quits a little earlier when the tides were changing for both the pound and the Greenback and just focus on setups that had better opportunities such as USD/JPY’s uptrend or USD/CHF’s triangle play.
Next time I’ll try to keep my trades more short-term (unless they have REALLY strong trends) and keep my eyes open for setups that present better opportunities.
That’s it for me today! Got any questions or trade experiences that you want to share? Give me a holler!
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