Trade view /
28 June 2016 at 9:55 GMT
This trade idea
expected additional follow-through selling in GBPUSD. That didn't quite happen. There was a small move lower and then a much bigger move higher and the trade was stopped out for a loss of 0.0105 points.
In hindsight, it is obvious that the bandwagon was at capacity. The UK divorce from the EU will take a couple of years and the domestic political turmoil will take a few months. That gives the market enough time to reassess GBPUSD.
So much for gut feel. Going short in a currency after a nearly 0.1850 point move was reckless and proved expensive,
Entry: sell ½ position of GBPUSD call at market (currently 1.3185), balance 1.3235.
Time horizon: five days.
— Edited by Michael McKenna
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