Trade Set-Up

Potential Trade Plan

Trade Action:   SELL A BREAK

Entry                      1.2238

Stop Loss             -50 pips

Take Profit           +200 pips

Trailing Stop Structure

1st Move                 20.0

1st S/L                       19.0

2nd Move              40.0

2nd S/L                    20.0

3rd Move                60.0

3rd Trailing S/L      30.0

Chart & Forecast Details – BEARISH

GBPUSD is hammering to the downside as the UK Coronavirus outbreak is the worst in Europe and that certain to keep the UK in lockdown whilst many other countries are coming out of it. We have one last level of support at 1.2250 and if that breaks it should fall quickly towards 1.2000.

Remember, keep tight trailing stops to mitigate retracements on a lack of follow-through of the break.

Note: FED Chairman Jerome Powell speaks tomorrow. The order will be managed around this event. i.e. If it’s active I will close the position out. If it isn’t active, I will only cancel it if it is close to the level at the time of the speech.

Outcome

Result: PROFITABLE TRADE

Final Execution Details

Entry                   1.2250

Took Profit        1.2230

Stopped Out      1.2300

Trailing Stop Structure

1st Move              20.0

1st S/L                    19.0

2nd Move           40.0

2nd S/L                 20.0

3rd Move             60.0

3rd Trailing S/L   20.0

What Happened?

GBPUSD snapped down through support at 1.2262 and as expected it dropped 40 pips straight through the level. Unfortunately, the move stalled around 1.2210 and retraced back to 1.2242, taking out our stop loss that had been lowered. All up, the trade was a good one. We gave it every chance to make maximum profit and still walked away with some cash!

Brad Gilbert

CEO & Founder of Traders4Traders – Brad has been trading for 28 years and was a former Chief FX Trader for Citibank. Brad trades all markets and all timezones.

Trades: EUR, GBP, AUD, NZD, CAD, JPY, CHF, DOW, SP500, OIL, GOLD

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