GBPUSD Potential Day Trade Opportunity

FX:GBPUSD   British Pound / U.S. Dollar
Following a nice head and shoulder reversal set up on the daily chart , GBPUSD             has started to form a decent bearish channel . Currently price is on its way down from a retest of the significant 1.54800 resistance level , which has held up very well. After breaking through minor support price retested this level yesterday.

So far 4HR and 1HR price action has been shaping up well for a short move. I will be looking for a few more factors of confluence before the beginning of the London session, determining whether I open a position. A stop will be placed well above daily support at 1.53900 and my target is 1.52390.
Trade active: Price action was looking good prior to the London open. Short entered at 1.3527 with stop placed at 1.53900 - 1% account risk.
Trade active: Market moving in my expected direction. Some indecision leading into a GBP news release.
Trade active: Currently up ~1.25%, slight pullback with high impact AUD news. Price action still supporting my short. Will move stop behind recent pullback into pivot level to lock in 1.10% profit if price goes long.
Comment: Profit target is still 1.52390 with a 1.10% profit locked in - risk free trade from this point on. Fairly confident that price will continue to fall, however, must be careful with the upcoming FOMC news release.
Comment: Stops remain in place at 1.10% in the green. Currently up ~2%.
Trade closed: stop reached: Tight stop at 1.10% profit was hit post FOMC release. Even though trade continued in my favour, who knows what could of happened. I'd rather take precautionary measures and lock in some profit leading into an unpredictable news even which would cause so much volatility. Overall the trade was good. Played out as I expected and the risk was managed very effectively.
Trade closed: target reached
+1 Reply
Great stuff mate. All the best.
+1 Reply
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