Trade Closed: 2007-10-26 09:42
Our position closed out this morning at full profit as the Euro strengthens against the majors.
1st half: +20 pips
2nd half: +40 pips
Total: +60 pips
We will continue to watch this pair to see if the bulls and bears battle it out at .7000 or if Euro strength takes it higher. Stay tuned!
Trade Adjustment: 2007-10-25 09:15
It appears we are back in the upswing after we saw positive data from the Eurozone and weaker than expected mortgaged data from the UK.
Our trade was triggered long at .6960 and we managed to hit pt1 during the morning European trading session. We have adjusted our stop on the remaining position to breakeven. Let’s ride this bad boy out and see what happens.
Stay tuned and good luck!
Trade Idea: 2007-10-24 15:15
Good afternoon! We have a nice technical play forming in EUR/GBP as the pair seems to have trouble breaking support at .6950.
The pair seems to also find support at the 240 MA’s, which has been a support in the past as shown in the chart. Stochastics are currently turning higher, indicating the short term down move may be a bit overdone.
Fundamentally, we saw positive Eurozone Current Account and Services PMI data, but a slight disappointment in Manufacturing PMI. Our risk in the UK is whether or not the Bank of England’s Monetary Policy Committee will cut rates in November. Analysts are indicating that a rate cut may not be necessary at the moment, but of course we’ll have to wait and see.
For now, we will long EUR/GBP as we think the uptrend may resume from here.
Long EUR/GBP at .6960, stop at .6920, pt1 at .6980, pt2 at .7000
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.