Long EURGBP (+25 pips)
A fairly typical RetiredearlyFX trade, this trade met all of the trading rules. On a fundamental level the outlook for the two economies is quite different, clear signs of slowing and evidence of reduced investment for the UK and the exact opposite for the rest of Europe. Brexit will be a drag on the UK for many years and is likely to lead to a significant reduction in the value and stability of the pound. On a technical level the trade met the trading plan exactly, a clear and defined uptrend on the higher timeframes and a plummer wave pullback on the hourly. Confirmation was found on the other pound crosses especially the GBPJPY which has reached the end of its plummer wave recovery making a turn lower very likely.
Partial profits have been taken and the stop loss moved to to cover the low of the correction, this is another important part of the plan, it means that the trade can be left to run its course without the possibility of a loss of trading equity.
Profits for the month move to +287 pips, lower than usual reflecting the reduced trading opportunities this month we trade a very clear plan and do not deviate from it, that means we can not always trade if the rules are not met we stand aside.
Success rate has been high so far in August with 5 out of 6 trades having a positive return.
The image below shows the trade, the redline was the partial profits line.
RetiredearlyFX is a trading name of the investment company Bagehotsway.
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We believe all figures quoted to be accurate but past performance in no way guarantees future performance
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