Tonight I entered a short position in GBP/CHF, after the pair dropped sharply today from an area of overhead resistance and a slight down trendline. The drop today was similar to prior recent drops that kicked off strong down moves (circled in yellow below):
I entered short at 1.51386 with a stoploss above the overhead support at 1.53909. I’ll likely exit the first half of my position at 1R and the second half at 2R. We’ll see how this trade plays out in the coming days.
Administrative note: Since I typically put on two equal legs of a trade and close out the first around 1R, I’ll be tracking my total pips per leg going forward.
UPDATE 2015.11.11 6:23 AM CST:
I went ahead and closed out this position for a loss this morning at 1.52756 for a loss of 137 pips per leg. The trade was clearly not going in my direction, and it was probably a mistake to enter the trade the night before non-farm payroll data was released.