Live Trade – GBP/JPY

Filed under: Live Trades |

I currently have a live trade in play on the GBP/JPY pair (the exchange rate between the British pound and the Japanese yen), and I would like to talk you through this trade setup right now.

 

Figure 1.

Figure 1.

If you take a look at Figure 1, you will see the trade setup in question. This is the daily chart for the GBP/JPY pair, and it is the only timeframe that we will need to look at for this particular setup as all of the information that we need is contained within this chart.

 

As you can see, this pair has been in a very strong bull trend (for some time actually), with the chart visibly moving up from left to right. I have marked in a horizontal level of support/resistance on this chart, which was made by the previous high. This level was then broken through, and price has now predictably retraced back down to this level, and formed a bullish price action signal in the form of a pin bar. It was here that I put an order in to go long at a 50% retracement of the pin bar, with a stop loss placed just a few pips below the low of the pin bar, and no target set at all – aiming to manage the trade.

 

As you can see, this order has been filled, and we are now in profits to an amount equal to the risk (1% of the bank). I have also moved the stop loss to breakeven on this, as I want to be in on a risk-free trade here with lots of potential for profits due to the tight stop loss initially placed. We will see how this one progresses and hope for a ferocious bullish move. If the stop loss is not hit on this for a breakeven trade – then I will update you on the progress in due course.

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