GBP/USD (Short)

This week is gonna be another exciting week for forex traders as Reserve Bank of Australia (RBA), Bank of England (BOE) and European Central Bank (ECB) will make rate decisions. GBP rallied strongly against all other currencies last week recovering 800 pips from a low of 1.36. I am of the view that the rally is fatigued and indeed this morning, GBP/USD dropped close to a 100 pips from last week's close. I am jumping onto this falling trend in hope that the trend will continue into 1.40. I shorted at 1.4361. My stop-loss is 1.4425 and I set my initial profit taking stop at 1.42. I will adjust the profit taking stop when the trend pans out as what I anticipate.

Update 1
The pair pulled up shortly after I entered the position and went precariously near to my stop loss. But it dipped quickly and from there it was one way down. I adjusted my profit taking stop a little to 1.415 and before I knew it, my profit taking stop was hit. I made a nice 211 pips on a full position. May enter short again on this pair if opportunity presents. A great start to the beginning of the month!

Update 2
Just as I thought its over for this trade, another opportunity shows up as I was writing Update 1. I entered a fresh position short again at 1.42 which was 50 pips higher than my last close. Stop loss placed at 1.43. Profit taking at 1.40 (aggressive but unlikely). Think we can continue to ride this trend down?

Update 3
Surprising, the Cable continue to hold and the pair rallied overnight and hit my stop loss making me take a hit for 100 pips. So instead of 210 pips, I got 110 pips. Still not too bad for a day's work