Cross-Eyeing EUR/GBP – Close Trade

Close Trade: 2008-06-16 10:00

I have decided to close this trade out today as price action suggests that the market will continue to the push the pair lower. I suspect this is as inflation becomes a focus for the MPC, and it looks like we have plenty of data out this week for the UK that may continue to push that sentiment further.

Close trade at market (.7880)

Total: -20 pips/ -0.36% loss

So, we took a very minor hit on this trade, but I feel it was time to move on. Currencies are going to continue to be choppy as markets remain uncertain and as we head into the summer. It’s gong to be tough, but let’s stay positive and focused!

Trade Update: 2008-06-13 10:04

After my last update, EUR/GBP slowly rallied higher, and after missing our first profit target by about 1 pip, the pair fell lower at the open of the European trading session as the Pound rallied against the Euro.

Support was found around .7880, at which we are trading around at this time. With it being the end of the week, I may close out this position at the end of the trading day. Stay tuned!

Trade Update: 2008-06-12 10:46

Volatility has brought EUR/GBP back to .7900 where our long position was triggered. The pair found buyers at that level and took us up about 30 pips before pulling back to current levels around .7920.

So, we’ve got a bit of profit going on right now, and for the pair may stall for the rest of the day as the Euro/US overlap comes to an end.

I will continue to hold on to the pair, and with the end of the week approaching, I may consider making adjustments. Stay tuned!

Trade Idea: 2008-06-11 09:33

crosseyed chart

Good day mates! We have a short term trading opportunity forming on EUR/GBP today as the pair drifts lower towards a rising trendline.

On the chart, we have a bit of hidden bullish divergence forming as prices have made higher highs, while stochastics has just formed a lower low as the indicator signals oversold conditions. I think we may see support at the trendline and with expectations of the ECB possibly raising interest rates in the Eurozone, it’s a strong possibility that the Euro may resume its rise against the Pound.

So, I’d like to go long, but wait to see if the pair will hit .7900 before doing so….

Long EUR/GBP at .7900, stop at .7845, pt1 at .7960, pt2 at .8020

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

Stay tuned and good luck!

On a side note…Don’t forget to check out Freshpips.com! Forex news picked by Forex traders! Let’s help each other out find what moves the markets…See ya there!

  • tsh

    Hi Cyclopip, great work you’re doing. Just wondering if you have ever thought of posting your track record (something like what Pip Surfer does)… I’m sure that will help all of us newbies greatly.

  • PipWolf

    A track record summary would be great, I agree. I’m already long on this trade.

  • tsh

    Hi Cyclopip, great work you’re doing. Just wondering if you have ever thought of posting your track record (something like what Pip Surfer does)… I’m sure that will help all of us newbies greatly.

  • PipWolf

    A track record summary would be great, I agree. I’m already long on this trade.

  • demontez

    Hello Cyclopip,
    Do you have any updated on this trade which has filled our entry price. it seem to be consolidating at the 62% retracement which is 7925.0 right from yesterday.Do you think the bulls have got that much momentum to push the pair up??

  • demontez

    Thanks for this update cyclopip. i just wander whether there will be profit taking on this pair dragging it down to passsed the 7900.0 level after the european , asia close. I am happy it has broken the 62% retracement level at 7925.0 which might indicate a likely uptrend movement but only time will tell. Keep us in the loop on this trade. thanks for your effort.

  • demontez

    Hello Cyclopip,
    Do you have any updated on this trade which has filled our entry price. it seem to be consolidating at the 62% retracement which is 7925.0 right from yesterday.Do you think the bulls have got that much momentum to push the pair up??

  • demontez

    Thanks for this update cyclopip. i just wander whether there will be profit taking on this pair dragging it down to passsed the 7900.0 level after the european , asia close. I am happy it has broken the 62% retracement level at 7925.0 which might indicate a likely uptrend movement but only time will tell. Keep us in the loop on this trade. thanks for your effort.

  • demontez

    Thanks cyclopip for this update. I was stopped out this morning on this trade as when i saw the break through at the 62% retracement level(7925.00) to 7950.0, i adjusted my stop loss to 7900.00 which was our entry point.unfortunately i don’t know what happened out there today suddenly there was a strong profit taking on this trade as i predicted in my last Post to you.In my opinion, i don’t see any comeback to this trade to the 62% retracement level by the end of today. Oh!! well, i will live to fight another day.thanks for your blog and have a good weekend!!

  • demontez

    Thanks cyclopip for this update. I was stopped out this morning on this trade as when i saw the break through at the 62% retracement level(7925.00) to 7950.0, i adjusted my stop loss to 7900.00 which was our entry point.unfortunately i don’t know what happened out there today suddenly there was a strong profit taking on this trade as i predicted in my last Post to you.In my opinion, i don’t see any comeback to this trade to the 62% retracement level by the end of today. Oh!! well, i will live to fight another day.thanks for your blog and have a good weekend!!

  • camelman

    Hi Cyclopip, question regarding keeping positions open when market is closed. What happen if for some reason some news came out and the EUR lost its value and went south. When the market opens back in Sunday, will the EUR/GBP start trading where it closed on friday or will it gap down? I am familiar with stocks gapping but never left forex trades over the weekend.
    Thanks for the feedback

  • camelman

    Hi Cyclopip, question regarding keeping positions open when market is closed. What happen if for some reason some news came out and the EUR lost its value and went south. When the market opens back in Sunday, will the EUR/GBP start trading where it closed on friday or will it gap down? I am familiar with stocks gapping but never left forex trades over the weekend.
    Thanks for the feedback

  • pakiestra

    Camelman, on occasion you can have a weekend gap any size of pips you can imagine (due to G7 outcomes meeting, news etc.) so this can effectively wipe yoour S/L out. All depends if this can become a new trend, rarely happens so over the weekend. A weekend as such is a rare onset of a new trend.
    As far as the EUR/GBP is concerned I had close the trade as I can’t see EUR to go up much any more and the Cable has been beaten up so badly recently that need some breather.

  • pakiestra

    Camelman, on occasion you can have a weekend gap any size of pips you can imagine (due to G7 outcomes meeting, news etc.) so this can effectively wipe yoour S/L out. All depends if this can become a new trend, rarely happens so over the weekend. A weekend as such is a rare onset of a new trend.
    As far as the EUR/GBP is concerned I had close the trade as I can’t see EUR to go up much any more and the Cable has been beaten up so badly recently that need some breather.

  • camelman

    ty pakiestra

  • camelman

    ty pakiestra

  • demontez

    Hello Cyclopip,
    I have just had a look at this currency pair and for so strange reason, this pair is actually fufilling your recommendation. If we knew it would have been better sticking with this trade until we get stopped out on our stop loss. The momentum is very high right now and it has hit your first target.Maybe watch out for its downward reversal and inform us.
    Thanks

  • demontez

    Hello Cyclopip,
    I have just had a look at this currency pair and for so strange reason, this pair is actually fufilling your recommendation. If we knew it would have been better sticking with this trade until we get stopped out on our stop loss. The momentum is very high right now and it has hit your first target.Maybe watch out for its downward reversal and inform us.
    Thanks