Trade Closed: 2008-07-31 11:29
The Euro gained strength across the board in the morning European trading session, bring EUR/GBP up to our adjusted stop and closing our position at .7880 for a profit.
1st Half: +40 pips
2nd Half: +40 pips
Total: +1.0% gain
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Trade Adjustment: 2008-07-30 10:09
With EUR/GBP trading around .7860, we’ve collected another 20 pips on our remaining position. I’d like to adjust our stop to lock in further profits.
Adjust stop on remaining position to .7880. Continue to target .7840.
I am going to continue to hold for now. If EUR/GBP hits .7840, I will leave the position open and trail my stop from there. Stay tuned and Good luck!
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Trade Update: 2008-07-29 17:45
Our first profit target was hit today as the Euro lost strength across the board, closing out a portion of our position at .7880. Time to make a few adjustments!
Adjust stop on remaining position to breakeven to create a risk free trade. Continue to target .7840.
No major news events for either currency within the next 24 hours, so movements may range from here or influenced by global risk appetites. Stay tuned and good luck!
Trade Update: 2008-07-28 09:48
After narrowly missing our trade being triggered on Friday, the market has brought us another opportunity as EUR/GBP has rallied and triggered our short position at .7920.
The pair has taken a dip after hitting an intraday high around .7930, so far so good. No major news for the rest of the today’s session but be on the watch out for UK credit data tomorrow, along with German CPI.
Trade Idea: 2008-07-25 00:04
Good Evening! Yesterday’s weak UK retail sales data hurt the Sterling against the Euro, but it pushed the pair back up to a rising trendline that was broken this week. Another great opportunity to short EUR/GBP???
As we can see on the chart, the pair is back up to the trendline, which also happens to be around a 50% retracement from the swing move from .7975 to .7840. It looks like t rally has stalled for now, leading me to think buyers are out of supply and sellers are ready to take over.
Fundamentally, we know the UK is experiencing a slowing economy, which has been priced in for a while now, but is it time to start thinking the ECB must pay attention to growth as well? Can they shift their focus away from inflation? With oil and commodities falling in recent trading sessions, this may be the case and traders may have to reverse their bullish bias on the Euro and price in that the ECB cannot remain hawkish on inflation forever.
I like a short trade on the idea that support has ossibly turned to resistance and that momentum may have shifted to the downside (the positive interest rate differential is pretty good too). This retracement to the 50% level may be a great opportunity to short, but I think I’ll wait until the 61% Fib is hit. So, that’s what I’m going to do:
Short at .7920, stop at .7960, pt1 at .7880, pt2 at .7840
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly. Remember that EUR/GBP has a higher pip value that most other pairs.
We have UK Preliminary GDP tomorrow. It could be a market mover and give us enough volatility for our pair to reach our trigger. Stay tuned for updates. Good luck!
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