GBP/USD, my 600+ pips ‘pre Brexit’ trade
I wrote in my last article that I will try to catch a trade worth to risk in theese days of high volatility and here I am, already out with +633 pips and +55,8K euros trade, after only three days! I will try to describe this trade best I can, but as you can see in my chart, I have pointed all the important developments before and after my long entry. On the lower daily chart, you can see better why I have decided to enter long here technicaly and why I have placed my TP here at 1.4700. At first, I have placed my target even higher in between 1.4700/800, but when the price aproached at the resistance level 1.4700 so quickly, three days before the Brexit referendum I’ve decided to move my TP at 1.4700 and watch the furder developments outside the market in this pair.
In my both charts, the H1 above and daily here, you can see clearly why and how I have opened long at this level. I waited for the ‘big boys’ to test the strong support at 1.4000 and I wanted to see how the buyers will react at this level. After I sow the move and the reaction, I have decided to open a long postion at 1.0467, protect the same bellow the 1.40 with SL and all I have to do latter was to watch closely the move and to decide my target if the price will move based on my expectations. As you can see, I openend my position on June 16., on Thursday after wich the price aproached the resistance and daily MA100 at 1.4330 on Friday. The buyers manage to close the day above that resistance which was the reason for the pound to maintained the strenght in the new week. After that, it wasn’t surprise to me when I sow the gap on Sunday, with more then 100 pips, after wich the buyers have formed a new support at 1.4430. I hope that you see how the bulls have build the new supports on each 100 pips, at first 1.4230 > 1.4330 > 1.4430 > 1.4530 and finaly 1.4630! Amaizing right!? Well, in my daily chart you can also see why I have decided to placed my target at 1.4700, , just few pips above the daily MA200, which I have patiently waited for whole Monday and you can see that the price hit exactly my target 20 minutes ago.
What about risk in this trade? Well, you can see in my H1 chart that the position wasn’t in negative teritory at all after my entry, just a few pips, but as I have placed my SL bellow the 1.40, this trade has a Risk/Reward ratio of 1:6. As the position strenght, that’s was just a 1/15-th of my leverage power. In the case that the price reached my SL, I would lose less then 0,6%.
Was my decision for long entry based only on technical view? It was not! I watched closely all the developments in Great Britan last weeks and despite all the referendum pools, which was in favor of the ‘Yes’ Brexit voters, I noticed several and much important expert writings in favor of the ‘No’ Brexit voters, which in my opinion should be given the power of the British pound before the referendum even starts. As you can see,that’s exactly happened in the last three days. What now? I am out here and there is no way for me to trade with Pound more and especialy not during the referendum.