Cross-Eyeing: EUR/GBP – Cancel Open Orders

Close Open Orders: 2007-03-21 01:20

It looks like currency markets are quiet at the moment as traders sit and wait for news to come out later today. EUR/GBP has been trading in a 5 pip range since about 7:00 pm EST yesterday. This is a good sign that we may see a breakout later today, especially with the Bank of England Meeting Minutes coming out at 5:30 am EST. Also, ECB President Jean-Claude Trichet will be speaking today. With so much uncertainty coming up, we will remove all open orders on this pair to avoid a breakout or whipsaw action.

Cancel open orders to go long at .6770

Trade Idea: 2007-03-20 10:02

crosseyed chart

We have a nice trade setup forming with EUR/GBP. The yearly UK Consumer Price Index came out this morning with slightly better than expected numbers at 2.8% versus the forecast of 2.7% on the headline, and inline on the core number at 1.7%. This brings the pair closer to a support area around .6770, where the pair stopped and turned on a dime back on March 12th.

With stochastics heading lower, we may see this selloff lose steam around that support area and look for a long position in this ranging pair.

Long EUR/GBP at .6770, stop at .6740, pt1 at .6805, pt2 at .6850

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!

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