Well, here’s one I’m not all that happy about. Sometimes price action is on your side, sometimes it isn’t – this time, it wasn’t. Those who picked up on the GBPUSD long entry I got into early in the week will likely already be familiar with the position, but for those that aren’t, I got in long on a bullish pin with what I thought was a relatively conservative target and a classic pin bar risk setup.
I generally ignore data releases. Well, not strictly true. I’m aware of them, of course, but I don’t let them play into my positioning. As much as people like to think they can predict which way things are going to fall, they can’t. Even if they could, traders aren’t trading the number – they’re trading the discrepancy between the number and the expected number. That’s a lot of leeway for misinterpretation, so I let it be.
Sometimes this works in my favor – a trade runs in the direction of my entry because data came out as favorable in line with my bias, against the expected release. Sometimes, the opposite is true.
This time around, the latter is true.
Out for a loss on some better than expected US data, and the cable continues to run short. This is why I have stop losses.
So, onward we go. Let’s see how things play out today and I’ll notify readers if anything paints itself as worth keeping an eye on ahead of this evening’s close.
Happy trading all!