I have been following an uptrend in the GBP/USD for the past few days, which was continuing today too. Therefore, I was looking for long trades on this pair. I also noted 2 major news events for the day which may affect the pair. The events are the US ISM manufacturing figure and the UK construction PMI figure.
After waiting a few hours, I got a SMA cross-over, signaling the potential long trade I was waiting for. A quick glance at the RSI, stochastic and MACD supported the trade idea too. MACD was gaining value, stochastic was trending up and RSI was more than 50, all three validating my trade setup.
I entered the market at 1.5557, which was the close of the previous candle. My stop loss was set at 1.5536, the last sing low. As I was 43 pips away from the nearest 00 level, I set my profit target at 1.5600. After keeping this trade open for 2 hours, I exited at 1.5393 with 36 pips. I did not want to take the risk of losing my profits after the news declaration.
You may consider this profit as a small win only, which is true actually. But as a mini trader, I think these small wins will bring the fortune for me. I do not want to make big wins or get rich with a single trade. Rather, I want to take small, solid steps one at a time and build my confidence along the way. Keep following Mac Bynum’s blog for more useful articles.
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