Shorting the trending EURUSD and GBPUSD pairs has been an obvious choice on days of USD strength. On Wednesday there was little appetite for risk in the markets. The GBPUSD failed to stay above its Asian high and began to make lower highs. An entry short was taken risking 15 pips for a potential 79 pips to our daily target at 1.2635. What looked like a great trade stalled out just above its Asian low and moved up to close our trade as price began to retrace in advance of the U.S. Open.
After the U.S. news, we entered short again with a stop above the U.S. session high and price moved down, stalled and bounced upward taking us out for a modest gain.
Some days trades look clear and work out nicely. Other days they can look great and just not deliver what you expect. Always keep yourself protected in any trade and lock in profit. At the very least get the risk out of the trade when it moves sufficiently in your favour.
Good luck with your trading!
