Cross-Eyeing: EUR/GBP – Close Open Orders

Trade Update: 2007-04-10 14:08

It looks like traders and speculators are changing their minds and began placing bets that the ECB will actually raise rates this week from 3.75%. Our shorts were entered and we saw some pip collecting, but we met resistence and gave it all back as broad based Euro buying commenced during the Euro session.

It is a good idea to get out of this trade or at least reduce your exposure to the Euro until after the ECB meets this Thursday.

I’m still short biased on this pair, but for now we will close all open positions at the current market price of .6810

1st half: + 5 pips
2nd half: – 15 pips
Total: -10 pips

Trade Idea: 2007-04-09 21:40

crosseyed chart

Hello Everyone! First, let me say I am happy join the FX-Men in their quest to get newbies started off on the right foot, and I hope that I bring great value to you all. For my first post, I will be “Cross-Eyeing” EUR/GBP…

Last week, we saw the Sterling sell off against the Euro shortly after the Bank of England announced their decision to keep rates at 5.25%. I think this sell off was mostly due to traders who were speculating that there would be a rate hike, and then closed their positions when the BoE disappointed. With UK housing data still putting pressure on inflation, I still see traders short biased on this pair as they will continue to expect a rate hike this year.

The pair is currently finding resistance around .6810. Stochastics are crossing below 80, showing that the pair may fall in the short term. We shall scale into a short position around the current market price and target the previous low around .6750 to create a low risk trade.

Short half position EUR/GBP at 0.6815, stop at 0.6835, pt at 0.6785

Short half position EUR/GBP at 0.6795, stop at 0.6825, pt at .6755

Please remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.