Here are the latest developments in my GBP-AUD trade. My plan was to buy on a break to the upside. Right from the start this pair dropped like a rock.  I entered long position at 2.0480 only to see it fall even more, before reversing. Take a look.

At last, the price rebounded somewhat. I’m looking for about 100 pips gain here, 2.0580. If that happens, I will decide whether to open next long position or look elsewhere. As you can see I had to do a little bit of adjusting to market changes. Unfortunately, it is us who have to adjust our views to market behavior, not the other way around. Should the price drop to 2.0380, I’ll be out of this pair.

Mike K.