Today as the U.K. session got underway, the GBPUSD climbed above its Asian session high and tested Friday’s high. It then pulled back and went back and forth as the market digested Gov. Carney’s speech.
After it broke and closed beneath its Asian high, a short was taken risking 9 pips for a potential 53 pips to our daily target at 1.2884.
Price moved lower for one candle then tested its Asian high one more time before moving lower. We moved our stop loss to plus one and incrementally lower as price moved to test its Asian session low. Price went sideways in advance of the U.S. open and with news pending, we tightened our profit stop more. The news volatility closed our trade for a modest gain.
Monday trading tends to be a bit tricky as signals can be ambiguous. Today was no exception with both the USD index and gold being off.
Asian trading may be subdued this week as Japan is on holidays all week and China will be on holidays beginning May 1. Much of Europe will be off on May 1st as well.
Good luck with your trading!
