GBPUSD back testing the breakout. Great long trade in my opinion. Any daily chart close below the August 15th low stop out.
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.
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!
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.