1/7/09 GBPUSD Trade

Written by Hugh, on January 11th, 2009

This was a surprise box breakout trade.

Long 1 (150) @ 5055
Stop @ 4911 (-144)
Limit @ 6032 (+977)

Click above for larger image

The price actually closed below the box, which is a short signal. However, I didn’t take that trade because it seemed like a fakeout. There was too much support by the price action below that level and if I did take that trade, I didn’t think that the support below would let the price go too far. In other words, the risk / reward wouldn’t have made it worthwhile.

Price popped the top of the box nicely and retraced back to the top of the box and went back up again. I don’t like this price action because usually when it breaks out of the box the price action is smoother. This price action has the feel of an exhaustion. I could be wrong of course but better safe than sorry.

I closed this trade manually because I didn’t like the action and it was a Friday so I didn’t want to hold it into the weekend.

Trade was closed at 5166 for a +111 pip profit.

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