April 11 – April 15, 2011 Weekly Winner: EUR/GBP Joins The Club

Before I reveal the new kid on the winners’ block, lemme remind y’all to read my introductory post on the Weekly Winner

April 11 – April 15, 2011: EUR/GBP Price Action Review

EUR/GBP Hourly Chart

Since I began the Weekly Winner in February, it has been dominated by EUR/JPY and GBP/JPY. But last week, EUR/GBP gave the yen crosses a run for their money!

While neither the euro nor the pound gave a spectacular performance last week (both pretty much traded sideways), the euro drew first blood against the pound as the U.K. CPI failed to meet expectations. However, the pound was able to erase its losses as the euro was struck down with Greek debt concerns later in the week.

EUR/GBP gave us a pretty clear signal to sell when it approached the upper WATR… Heck, it was practically screaming “SELL ME, SUCKA!” Price was right in the area of the WATR, creating higher highs. Meanwhile, Stochastic had just crawled out of overbought territory and was creating lower highs. The bearish divergence was as clear as Pip Diddy‘s chrome dome, I’d say!

To maximize the move down, we could’ve sold at the WATR itself, adding to our position and moving our stop every 25 pips. Doing so and taking profit at the WO would have given us an end reward-to-risk ratio of 6:1.

Dang, with a payout like that, maybe I should start paying more attention to this pair!



  • Mikhail86

    Hey a bit late on this comment but I am wondering, isn’t a 25 pip SL a bit tight for this pair? In hindsight yes that would have maximized your profit, but in real time what signals would there have been to use such a tight SL? Or are there signals that would have suggested a larger SL?

    • cyclopip

      I believe for EUR/GBP, 25 pips may have been enough. This pair doesn’t move as quickly as other cross pairs. Also, a tight stop may have also been okay since the setup called for picking a top.

  • DrYdEn217

    what trade are you referring to? The EURJPY trade I got 600 pips and tried to get back in but it was to choppy and i got stopped out

  • DrYdEn217

    If you look at the weekly there is a two year channel that it broke out of at .8775 I was able to get in on it and make 150 pips. the setup your talking about looks to be the pullback and now the channels support may be a resistance I got a buy order at .8805. good post!

  • DrYdEn217

    If you look at the weekly there is a two year channel that it broke out of at .8775 I was able to get in on it and make 150 pips. the setup your talking about looks to be the pullback and now the channels support may be a resistance I got a buy order at .8805. good post!

  • Cyclopip

    @DrYdEn217

    Good eye bro! Thanks for notifying me about that, I’ll keep it in mind for my day to day trades. Speaking of trades, how’d yours turn out?

  • Cyclopip

    @DrYdEn217

    Good eye bro! Thanks for notifying me about that, I’ll keep it in mind for my day to day trades. Speaking of trades, how’d yours turn out?