Fundamentally I think both currencies are weak albeit the pound stronger in the long term. Sentiment lately would likely see the pound weaken further before any gains. Mark Carney speaks in Paris tomorrow and if he continues a dovish tone then we may see this trade kick off. I would pull my stop loss to even if this happens ahead of the Australian employment report on Thursday. BOE are expected to hold their rate at 0.50% on Thursday.
Unless this trade turns against me right away I should have the opportunity to lock it in at break even.
Please comment back.
The trade emphasises that although the technical all point in the right direction, you need a few consecutive data releases to support the sentiment.
Capital preservation is high on my to-do list this year as well as work on money management and patience. I had a good crack at this trade but at least no capital was lost. I will now wait for a break out of this channel where there will be plenty of potential to gather some pips.