Trade view /
15 July 2016 at 0:45 GMT
It is said that patience is a virtue which is probably true, until it isn't. In FX trading sometimes being patient is very rewarding; other times patience can leave a mark. Friday could be one of those "leave a mark" days.
The original trade idea expected that the GBPCAD post-Bank of England reaction would fade. That part was right. However, there is an annoying intraday uptrend line from the July 13 bottom which comes into play at 1.7160.
While that line is intact, a rebound back to 1.7340 cannot be ruled out.
In addition, tomorrow, there is a large amount of economic data and a speech by Mark Carney which could have negative impacts on this trade.
Since no one ever goes broke taking profits and GBPCAD is rather volatile, it makes sense to close the position at the market (1.7190) and book a .0100 point gain.
Note, the second order was not filled.
Entry: sell 1/2 position of GBPCAD at market (1.7290), balance at 1.7360.
Time horizon: Five days.
GBPCAD 30 minute with intraday uptrend line noted
— Edited by Adam Courtenay
Non-independent investment research disclaimer applies. Read more