Trade Set-Up

Potential Trade Plan

Trade Action:   SELL A BREAK

Entry                      1.2259

Stop Loss             -30 pips

Take Profit           +120 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      20.0

Chart & Forecast Details – BEARISH

Now that GBPUSD has broken down through 1.2250 and the US Federal Reserve has said they’ll continue to do whatever it takes plus the fact that the Coronavirus is still very active in the UK, I suspect we’ll see GBPUSD continue to trade lower. With no levels on the downside I am waiting for a rally back towards 1.2270 to get short again.

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

Outcome

Result: NO TRADE

Final Execution Details

Entry

Took Profit        

Stopped Out    

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?

We nailed the direction but unfortunately missed the entry on two occasions. I can’t be too disappointed though as it only got to within 20 pips from my entry-level.

One take away from this lost opportunity is, next time GBPUSD starts trending maybe change my trade plan. One thing to consider would be to decrease my trade size in half and increase my entry parameters. That way I still get into the trade and make some money and don’t completely miss the opportunity.

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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