Well, I hope everyone had a good Easter break! After a few days off from trading over the holidays, I’m back at the trading desk and ready to review some more trades that I’ve taken. Here is the trade I took yesterday.

The trade was on the GBPUSD and was long. The entry signal was the large bullish candle that I’ve circled on the chart below. This candle came off the 38.2% Fibonacci. The candle was however quite large and luckily for me happened whilst I was away having lunch. I say lucky as it allowed me to get in at a better price on the retracement. Normally this wouldn’t have been the case, I would have gotten in with a half sized position due to the large stop required, but I guess sometimes lady luck smiles on you! I entered the trade on the close of the second bearish candle in the chart after it failed to make it past the resistance/support level of the 38.2% Fibonacci(1.5156). I’ve circled and marked this region on the trade as retracement. Because I got into the trade at a much better price than if I had gotten in on the first trade signal, I was able to take a full size position and keep a small stop loss. I set my original target profit to the 78.6% Fibonacci and let it run. Unfortunately, I had to go out and wasn’t able to stick around to watch the trade, and so I modified my take profit to the potential resistance point 12 pips below the Fibonacci 1.5240). The trade ended for me at this point with a profit of 84 pips. All in all, a nice welcome back from the holidays!