Cross-Eyeing EUR/GBP – Trade Closed

Trade Closed: 2008-04-25 09:24

Our patience has paid off today during the morning European trading session as the Euro continued to sell off against the British Pound. This brought the pair all the way down to .7850, hitting our second profit and closing out trade along the way target along the way.

1st Half: +40 pips
2nd Half: +110 pips
Total: +1.5% gain

It’s always nice to bank in some profits at the end of the week, isn’t it? Have a great weekend!

Trade Update: 2008-04-24 09:50

Our short position was triggered and after a couple of days of hanging out above .8000, the pair finally found some sellers to push it lower. Our first profit target was hit at .7960 where a portion of our trade was closed to lock in a profit. Stop loss on remaining position should be set to break even at .8010.

The Euro fell today on a combination of ECB comments and weaker than expected German business data. This may be the spark for more momentum to the downside, so let’s keep a watchful eye on our positions.

Be sure to stay tuned for updates and adjustments…Good luck!

Trade Idea: 2008-04-22 14:15

crosseyed chart

We have a possible short play forming on EUR/GBP as it appears sellers have taken command around .8050.

On the chart, we can see a lower high on the pair, as traders have found resistance between .8010 and .8050. This also coincides with the 61% Fibonacci retracement area and stochastics appear to be coming out of overbought territory.

Fundamentally, the Euro continues to be strong as inflation worries keep the ECB hawkish, but with the credit crunch finally reach and affect the Eurozone? It’s not looking that way at the moment, but if that does materialize we could see a sell off of the Euro against the British Pound.

Short EUR/GBP at market (.8010), stop at .8060, pt1 at .7970, pt2 at .7900.

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

We do have event risk tomorrow with the MPC Meeting Minutes and the UK retail sales data on Thursday, so stay tuned for updates and adjustments. Good luck!

  • demontez

    cyclopip,
    It seems the long awaiting target exit point on this trade have materialised today on target point 1. It was a breath taking experience going with this trade. But i will say it has been a success at the end waiting for it to materialise. I did not use real money to enter the position. Thanks for helping baby traders like us. Good luck everyone

  • demontez

    cyclopip,
    It seems the long awaiting target exit point on this trade have materialised today on target point 1. It was a breath taking experience going with this trade. But i will say it has been a success at the end waiting for it to materialise. I did not use real money to enter the position. Thanks for helping baby traders like us. Good luck everyone

  • cyclopip

    Thanks for the comment demontez. Glad to hear you are practicing on demo and I hope we continue to help everyone develop your own trading style. Good luck!

  • cyclopip

    Thanks for the comment demontez. Glad to hear you are practicing on demo and I hope we continue to help everyone develop your own trading style. Good luck!

  • SittingBull

    Great observation, check out the bearish engulfing pattern :)

  • SittingBull

    Great observation, check out the bearish engulfing pattern :)