I’m long GBPCHF and short GBPAUD… How could you be going long and short GBP at the same time? Yes, under certain circumstances it could be a good idea… see the reason at the end of this post.
Yesterday I went long on the GBPCHF. It is currently trading in a short term range, and if it breaks the top of the range, I’ll move my stop loss to the breakeven level:
I opened my GBPAUD trade the 25th of June, as the time of this post, it is at +440 pips, and I intend to hold it until it hits my TP order at 1.4903. I just would feel more comfortable once it breaks 1.5072:
GBPAUD Analysis, GBPCHF analysis
We’ve got plenty of fundamental announcements coming up this week:
GBP Interest rate
EUR interest rate
USD unemployment report
CAD unemployment report
Just to name a few…
The European session is about to end and today there are no banks open in the US. So I think I’m done looking for trade opportunities for the week…
Still I need to take a few decisions on my opened trades.
I’m going to close all my trades but the GBPAUD one…
fundamental announcements, GBPAUD Analysis
The market closed above the highest high of the pattern that triggered the order, therefore it was canceled as mentioned on the previous post.
Be happy though, because there is another one on the GBPNZD. Both, the GBPAUD and GBPNZD are positively correlated, so it wouldnt be wise to open trades on both of them (you are most likely to get the same result on both, risking more than you initially planned). But the signal was triggered on both of them, so I decided to close the order on the GBPAUD and open a new one on the GBPNZD (which is still valid).
Here are the details of my order:
Entry stop: 1.8681
And again, if the market closes above the highest high of the pattern that triggered my order I will again cancel this one.
GBPAUD Analysis, GBPNZD Analysis
Both of my trades are closed…
GBPAUD – Decided to close it early today as per my trade management rules (it didnt broke the ST support level before the NFP announcement). Total: +113 pips
EURJPY – Decided to close both trades at 119.72 (24 pips away from my TP order). First trade: +381 pips, second trade +276. Total: 657 pips.
I decided to close the EURJPY as it was about 20 pips from my TP order and I’m not going to be able to monitor my trades for the rest of the day, its not worth it to hold your trade over the weekend for 20 pips…
Have a great weekend!
EURJPY Analysis, GBPAUD Analysis
As you already know, the Non-farm Payrolls report is released tomorrow, it is the most important fundamental announcement, at least is the one that has the most impact in the market (or used to have the most impact). But I have noticed in the last months (even years) that the market doesn’t react to this announcement as it used to react. In these last months, the market spikes up, then down and at the end, it ends up where it was before the announcement…
So this is my plan for my trades:
I have two longs here: 115.91 and 116.96 (currently at +160 and +55 pips respectively). Both of my SL orders are at 116.54.
If it breaks the 117.89 level up, I will hold my trades during the NFP announcement and will move my SL to 116.85 on both trades. If it doesn’t break the 117.89 level up I will close my trades before the announcement.
I have a short at 1.5616 (currently at +110 pips), and my SL order is at 1.5662
If it breaks the 1.5478 level down, I will hold my trade during the NFP announcement and will move my SL to 1.5586. If it doesn’t break it, I’ll close my trade.
We need to take in consideration that the NFP always has the potential to have a large impact in the Forex market, especially if the released number differs a lot from the expected one. We’ll see what happens.
Trade Safe and good luck with your trades.
What do you do? Do you keep your trades open during the NFP announcement?
EURJPY Analysis, GBPAUD Analysis