My GBP/USD Trade (20-08-2008) --- Position Squared

*Click on the images for the enlarged version.

Howdy everyone,

My trade today on the GBP/USD. It has been a long wait this week due to market moving stupidly on Monday and Tuesday. Finally, I saw something that is somehow nice :)

I shorted the GBP/USD at the price line of 1.8623 at 03:05pm (Singapore Time) | 07:05am (GMT). What I saw was that, price action movements which cuts through nicely below both MAs with yesterday's high a good minor resistance and at the point of entry, my indicators were on my side. On top of that, I used a little bit of co-relation using EUR/GBP chart to counter my analysis.

My Target Profit was at 1.8540 (83pips) near to yesterday's low and Stop Loss at 1.8647 (24pips). Risk : Reward = 24 : 83 = 1 : 3.45.

I moved my Stop Loss into Protective Stop gradually with the movements of the market and after market has barely hit my Target Profit before going for a breather, my final Protective Stop shifting was around after 07:00pm (Singapore Time) | 11:00pm (GMT) which was at 1.8597 (26pips) as a conservative precaution that the stupidity movements of the market might continue. Then I went out for dinner with my wife.

I just came back from dinner and my Protective Stop was hit at 08:30pm (Singapore Time) | 12:30pm (GMT). 26pips profit for this trade :) More opportunities to come once a clear break has happened :)

Peace and trade safely everyone...