Trade view /
11 August 2016 at 9:50 GMT
The original trade view
expected that the strong support in the 1.6990–1.7000 area would hold and that the combination of a bounce in GBPUSD and lower oil prices would cause GBPUSD to rebound.
Oil weakened, but not enough to overcome renewed bearish GBPUSD sentiment. GBPUSD couldn't get any traction above 1.3100 and resumed the downtrend as traders concluded that the worst is far from over for the UK and Brexit. GBPUSD crashed below support at 1.2950 and GBPCAD sank, triggering the stop loss for a 0.0093 point loss.
This trade underscored the danger of making assumptions. It assumed that the support level would hold, despite lacking confirmation from a topside break in the intraday downtrend line.
Note: The second buy order at 1.7070 was not triggered.
Buy ½ GBPCAD at market (currently 1.7010) and the balance on break of declining trend line on 30-minute chart. Currently 1.7070.
Time horizon: 4 days
— Edited by Clare MacCarthy
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