Our April 24-28 Forex Weekly trade idea was to buy GBPCAD 1.7271 (Friday Apr 21 close); stop loss 150 pips 1.7121; take profit 150 pips 1.7421. Sunday’s French election news worked against both of the currencies in our pair: GBP weakened a bit versus the EUR and the CAD strengthened due to the “risk on” (stocks up) environment inspired by the French election news favoring the status quo (pro Europe candidate).
By the end of the day on Monday the GBPCAD had made back all of its loss except 12 pips. We stayed with the trade and over the next 12 hours (Tuesday morning) the pair increased 162 pips and hit our 150 pip profit target.
The point is to not abandon a good trade idea if its still valid and showed promise, which it did recovering nicely from the French news.
Here is the logic for the trade as set forth in the Forex Weekly:
And here is the price action from Sunday through Tuesday (price target reached!)