Cross-Eyeing EUR/GBP: Trade Closed

Trade Closed: 2007-11-01 11:34

Our trade was opened yesterday after the FOMC interest rate decision cause a bit of volatility in the markets. The Pound continued to rally against the Euro, enough to trigger our trade and eventually stop it our position out for a very small loss of -30 pips.

The pair is currently hanging out at the moment and it’ll be interesting where this pair heads to next as traders speculate on whether or not the ECB will cut interest rates and if the Bank of England will hold.

Update: 2007-10-31 13:31

Our position hasn’t triggered yet, but its pretty close at EUR/GBP trades around .6960. We have the FOMC interest rate decision coming within the next hour, and the volatility could be enough in currencies to trigger our trade.

We will continue to keep our orders open, and stay tuned for any possible position adjustments that may be needed.

Trade Idea: 2007-10-30 07:57

crosseyed chart

Looks like EUR/GBP has found its way back to the 240 MA’s, giving us another opportunity to jump back in the uptrend at a great price.

As we can see from the chart, stochastics are approaching oversold territory. This means we should probably wait to see if the pair treads lower just a bit more before entering. I like the 76.4% Fibonacci area as it also coincides with the .6950 price area and bottom moving average.

Long EUR/GBP at .6955, stop at .6925, pt1 at .6970, pt2 at .7000

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Good luck!