15/09/2011 Update GBPUSD: Stopped out for +84 pips profit

So here’s an update to the GBPUSD trade from last week.

You may remember from my earlier installments (which you can read here) that having gone short at 1.5908 I fully expected the GBPUSD to bounce of the area of support around 1.5785 and then head back up and take out my trailing stop (which by now had been trailed to entry) to provide me with a break-even trade.

Well price continued on down past that support area and closed below that level on a daily basis. However it wasn’t a convincing close below and set up a low-test bar which indicated a possible reversal.

Anyway I just followed my plan and trailed my stop accordingly. Next day was a slow day until early afternoon when the concerted intervention by the 5 main Central Banks sent markets haywire and unsurprisingly my trailing stop was hit.

So having entered short at 1.5908 my trailing stop was hit @1.5824 for a total of 84 pips profit. Whilst price had at one point been over 200 pips in profit I’m quite happy to be milking some profits for what was really about 10 minutes work a day.

Until next time, trade well.