Trade Closed: 2010-05-27 23:57
Doh! Looks like the 0.8400 handle was just out of reach as price bounced off a former low. Nevertheless a win’s a win!
The EURGBP pair bounced back up from the previous low around 0.8425 and went all the way back up to 0.8500. In hindsight, I probably should have closed earlier once I saw that candle with a long lower shadow and the successive green candles. Anyway, here’s how my trade panned out:
Even though my second position got stopped at breakeven, I’m still happy I got the win. This marks my first “extended” winning streak of the year! With the summer coming up, we may see volatility dry up, so I’ll be looking for more range plays, and will probably put more day trades up. Gotta keep grinding baby!
Trade Update: 2010-05-27 05:21
Now that my first profit was hit, I’m going to stick to the plan and move my stop loss on the remaining position to my entry point at 0.8500! Now that I’m sitting on risk-free trade, it’s time to go catch the replay of the Celtics Magic game.
Ha – just kidding! I actually need to read up and find out what’s causing this pound strength. Hopefully this keeps up and I hit my next take profit point!
Trade Idea: 2010-05-26 23:21
After breaking through a key support level, price has retraced a bit. I popped on the Fibonacci tool and wadya know, the former support level lines up with the 38.2% Fib level. It also coincides nicely with the psychological round figure at 0.8500. A nice chance to get in on this short move?
In the euro zone, more and more banking concerns are popping up in Spain. On top of that, recent economic reports had been bleak, with the GfK German consumer climate report failing to meet expectations. It seems like the debt crisis is now taking its toll on the euro zone’s economy. Later today, Germany will release its preliminary CPI, which could post a 0.1% rebound over the 0.1% decline seen previously. This could provide the EURGBP a slight boost up to my entry point.
Meanwhile, the UK is set to release a couple of economic reports today. The CBI realized sales report later could show that sales volume held steady in May while the GfK consumer confidence index could print a slight improvement in sentiment for the month.
I’ve put a limit order at 0.8500, while putting my stop loss past the 61.8% Fib level at 0.8550. Since we’re entering the summer season, I don’t think we’ll be see too many big moves, so I’m just going to make this a day trade.
I’ve set my first take profit point at 0.8460, just above yesterdays low. If my first take profit point gets hit, I’ll move my stop loss to my entry point to create a risk free trade and continue to aim for 0.8400.
Here’s my game plan:
Short EURGBP at 0.8500, pt1 at 0.8460, pt2 at 0.840, stop loss at 0.8550.
Looks like the Celtics and Lakers have stumbled the last couple of days. I guess people we’re calling that Laker- Celtics Finals a little too early! Even though that’s what I want, you know what they say, “Never count an underdog out!”
Thanks for reading my blog! Don’t forget to follow me at MeetPips.com!