GBPUSD back testing the breakout. Great long trade in my opinion. Any daily chart close below the August 15th low stop out.
Trade active:
I still like this trade. GBP is in an extremely oversold condition on the monthly chart and should start to make its way higher in the short term.
Trade active:
We are likely going to test double bottom. I don't expect any further downside from there. I do expect the dollar to strengthen but not to the extent where the lows of GBPUSD will break just yet! Trade remains open.
Trade closed: stop reached:
As far as this trade goes it has hit our stop however I believe there is very little downside in the pair. I will be looking for a reentry soon!
Comment:
I look back at this trade and I must say it serves as a very humble reminder why you must always abide by your stops! The best insurance policy you'll ever have in this game.