GBPUSD
- Currency Pair: GBPUSD
- Position: sell
- Lot Size: 0.1
- Risk/Reward Ratio: 1.10
- Profit/Loss: -\2,336
Entry Rationale, TP and SL Level
4h
1h
15m
5m
The price broke below the lower boundary of the 4-hour channel, and a third downward wave seemed likely to form on the 1-hour chart.
After breaking below both the 1-hour range and the Asian session range, I waited for a pullback on the lower timeframes and entered a short position.
Looking at currency strength, the dollar appeared weak, but observing USDJPY suggested the dollar might gain strength.
My take-profit target is set near the horizontal level likely to be respected on the 1-hour chart, with the option to extend it toward the 4-hour horizontal level if the move has momentum.
My stop-loss is placed if the price returns inside the range and breaks above the lower high on the 15-minute chart.
Trade Review
In the end, my pending order was triggered, and I entered a short position, but the U.S. economic data release hit my stop-loss.
After the 1-hour range was broken to the downside, I entered on a shallow pullback, and the price moved slightly against me after entry.
However, since it bounced off the resistance line and began to fall, I decided to hold the position, but the data release ultimately stopped me out.
