Today I actually got into this trade by chance as I saw the strange reaction to the UK Manufactoring data. It came just a bit better and thus gave some credit to the Infaltionary fears but as the price oscillated around the 2.0200 level it shoot up to 2.0217 where it hit the roof and came straight down under 2.02.
I actually made 5 trades before letting it run. Here is my actions:
First I shorted 2.0188 - doubled up on Stop & Reverse to long at 2.0207 > shorted the same amount at 2.0192 >>> reversed the same amount to long at 2.0211.
Well finally I saw the European indices all were liquidated - thus EURJPY and GBPJPY were under huge pressure of unwinding. This was mainly done thru the USDJPY strengthening below the 102 mark.
The hourly GBPUSD chart was also looking very toppish with an uptrend begging to fall under its own weight --- the upmove made too much in too short time and MAs were giving signs of reversal.
TWEEZER TOP - Daily candle shows reversal>
The Daily chart also added to my conviction as RSI and Momentum were also at very high levels. I actually assumed the YEN crosses unwind would drag also the majors which were too high already.
So my final trade was Stop and Reverse to Short the whole position at 2.0201. Then added 1/3 more at 2.0211 averaging the price to 2.0204. Then I left it and covered before midnight at 2.0094 for +110. An hour later it broke down to 2.0040 and it will possibly go much lower.
I want to mark this ride because of the large leverage involved (3). It made me remember the ultimate joy when I rode a GBPUSD long for 120 pips with 1,2 standard lot position - how romantic those early days were.