picatris
Short

A cunning bear trade for the cable

FX:GBPUSD   British Pound / U.S. Dollar
I was very lucky on my last win on the cable. This last bear bar was quite strong,and I could easily lost all my earnings . Friday's movement was so strong that iI strongly doubt it will turn around into bull land that fast. The up channel drawn may still hold, as it was just briefely pierced, so my guess is that it will now continue (at least) to the bottom of that channel, and that's where I put my take profit limit. Furthermore, It would be unlikely that after the strong down move of the last months would be succeeded by a strong up move. So I trust that until this brexit situation is solved, the movement will mostly range or perhaps continue going down.

GBPUSD continues to be very volatile, so extra care must be put on this trade. Exceptionally the risk/reward ratio is closer to 1, to encompass the fact that everything may turn around very fast.
As on Monday The cable us bullish, I waited for it to start looking steam and entered my position closer to the channel. After a scary Tuesday, where it seemed the channel might yield, it wnd straight down. I closed my position with about 120 pips profit. That was really nice. Unfortunately I chickened out on Monday because of the strong upswing and reduced my position size... It was a good trade though :-) Next week I will continue shorting this. At the very least, it will hit the bottom of that channel
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