GBPUSD Trading Analysis, Past Trades and Travelling

@Colibritrader

 

Dear traders,

After coming back from a holiday I discovered I have not missed a lot.

Still Brexit talks.

Still no major FX move.

Only one good trade that I took and it appears to have been the one with the best possible outcome.

I will admit- I was not expecting such a quick and profitable run, but sometimes you get lucky, too 🙂

Taking a break while still having a trade on is not such a bad idea- sometimes.

I would not recommend it but here is what I mean:

Over a week ago I wrote about DAX on my Twitter page.

You can see the original tweet HERE or a screenshot of it just below.

GBPUSD Trading Analysis

I managed to take a long trade after the bullish engulfing candle formed.

All the possible factors to take this trade aligned and I did take it. I also informed my Twitter followers of my first target and once it was hit there was no reason to take the profits from this trade quickly.

I let my trade run for a little while longer.

Now, it is over 300 pips higher from my original target.

That is exactly how one should be trading when following his/her trading rules.

Simple- you make money by letting winners run and cutting losers as quick as possible.

Currently DAX is located at 12410, which is around 500 pips above my entry.

The risk:reward on just this one trade is 3.77 so far as you can see from the image below.

gbpusd trading analysis

If price goes to the final target that will be a risk:reward ratio of 5.07 as you can see below:

 

gbpusd trading analysis

This is certainly not the highest risk:reward ratio I have gotten, but is still a very decent one.

Here I am not taking into consideration other trades I have taken along the way.

As the ones whom I’ve taught are aware, there are a few other hidden trades that you could have taken. You could have multiplied your profits and increased your risk:reward ratio to an even higher figure.

Even if you have kept things simple, this is a great trade that is still developing.

 

GBPUSD Trading Analysis

 

It is funny how I was supposed to write about GBPUSD and I ended up going after my last trade for such a long time.

This GBPUSD analysis won’t take too long.

I am looking at a bearish engulfing pattern that has formed on the daily chart.

This is boding for more sellers to join the selling queue.

What I would have done in normal circumstances is wait for a retracement and then a taken a short trade after a 4H bearish confirmation.

I am currently not sure about such a scenario.

I believe that we might see a second re-test of the 1.3300 area, before (and if) we see further GBPUSD declines. I will not trade this pair, especially after my winning streak from last week.

Sometimes in trading you need to take a break even after you have just come back from a holiday.

I know that sounds hilarious, but that might be the best thing to do when you are not sure.

Even after a summer holiday 🙂

A few other factors to consider when thinking of this trade are:

There is a bullish rejection candle or pin bar on the weekly chart

All other GBP- related pairs are exhibiting bearish signals.

In the end, trading is a lonely discipline and you as traders should do whatever our trading plan says- if of course you have one!

Before I finish this article, I want to share with you a magnificent view from my last trip to Greece.

gbpusd trading analysis

Trading is a stage and you decide what role to take…

Happy trading,

Colibri Trader

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