Two more gap trades I made before the markets closed on Friday. Anyways, the general direction is bearish for both GBPUSD and EURJPY. Let's start off with GBPUSD.
The sell off started on Friday actually. Judging by the hourly time frame, the second last hour was still considered a range trade. Momentum picked up in the final hour and GBPUSD started a sell-off. My take profit is actually just below the sell-off. This was strategically placed because of what happened last time. I was eleven minutes late to the market opening gap down and missed the opportunity to take a much bigger profit. Anyways, that is all over now. Right now, there is enough leeway so the market opening spreads should not hit the take profit for any reason. Spreads have been accounted for and the take profit is far enough to give room for any insane spreads. In case a gap does occur in my favor, this pair should be an instant close. The market price will be less than my take profit price and this should be instantly closed at market. In a way, it helps secure a much bigger profit without getting unexpectedly hit by spreads.
A bit less confident on this trade, but could still potentially work out. EURJPY is stalling for a bit longer than I would have liked. A gap down doesn't look likely. It is more likely this pair will stay flat or gap up on Monday's open. Keep in mind that it is still in an hourly uptrend. This is rather dangerous to be shorting right now. The Euro is week, but the Yen is even weaker. I am looking forward to the price stalling and eventually accelerating downwards once again. Not very likely, but this time I will be watching the market open and close out this trade as soon as possible.
