[TW] 08-18-2012 Short GBP/USD by littlebopip

[littlebopip]

Pair: GBP/USD

Timeframe: 4-hour

Chart:



Trade rationale:

There's an ascending triangle on the 4-hour chart and I want to short at the top. I think the rallies this week will be short-lived and we'd see another selloff next week.

The top of the triangle looks like strong resistance since it has held a bunch of times in the past. I'll be aiming for the trend line (bottom of the triangle) as my first target then I'll let the rest ride in case the triangle breaks down.

Trade details:

Short GBP/USD at 1.5750, stop loss at 1.5825, PT1 at 1.5600.

Reward-to-risk:

Potential 2:1 return if it hits my first PT (75-pip stop/150-pip PT)

[speculation]

Looks like you cracked 50 pips on this one if you took profit before it went back up