OCT-22 Sell GBP (vs. JPY, USD, CHF) 2% T/P In 1-12 Weeks

Trading Discussion Currencies
1

October 22nd, 2019

Trade Idea Sell GBP (Great British Pound)

Great British Pound (GBP) rallied sharply against its’ major peers from October 10th to October 21st posting a gain zenith of more than 6% versus the US Dollar (USD) which poses an opportunity to sell-short the profit-taking pull-back. The prime idea to me seems to pair GBP shorts with USD, CHF and JPY. Because the trend this trade idea counters was a short-term one (less than 1-month) the duration of this trade will be limited to around 1-month as well.

GBPUSD (Great British Pound / US Dollar) Sell
Current Quote = 1.289
Target = 1.265 (1.8% difference from current quote)
Duration = 1-6 weeks. (Estimate 1-3 weeks)

GBPJPY (Great British Pound / Japanese Yen) Sell
Current Quote = 139.8
Target = 136 (2.7% difference from current quote)
Duration = 2-12 weeks (Estimate 2-4 weeks)

GBPCHF (Great British Pound / Swiss Franc) Sell
Current Quote = 1.275
Target = 1.255 (1.6% difference from current quote)
Duration = 1-3 weeks (Estimate 2-3 weeks)

Leverage limit for aggregate position = 2X
Estimated profit / duration if successful = 10% / 4 weeks

Reverse Backlink = Macro Insights And Trade Ideas

2

That was a mistake.
Revision = 5% / 4 weeks

3

November 30th, 2019

Liquidate, GBP did not perform as anticipated.

GBP/USD quote 1.293 (11/30/19)
Original quote 1.289 for a 0.31% difference (loss) from today’s quote 1.293.

Rounded estimate 0.5% net loss. 0.5% x 2 = 1%.
1% loss. Remember estimated profit was 5%.