Potential Trade Plan
Trade Action: SELL A BREAK
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.
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
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.
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