Close Trade: 2008-11-21 07:55
Not too long after my post, EUR/GBP tested .8350 again and found enough buyers to push the pair all the way to .8500. It looks like that was the top as sellers pushed the pair all the way back down to .8400 this morning.
Close trade at market (.8395).
Total: +45 pips/ +0.26% gain
Pretty frustrating to watch a 150 pip gain turn into a 45 gain, but a gain is a gain, right? I should have expected resistance at .8500 as it is a psychological level, so a lesson learned for future trades.
Thanks for checking out my blog, have a great weekend and I’ll see ya next week!
Trade Idea: 2008-11-19 15:04
There may be a swing trade opportunity in the works as the pair continues to retrace as much as 50% of the very volatile move from around .8150 to .8650. Stochastics are creeping higher indicating the move lower may be a bit overdone. Time to return to the uptrend?
Fundamentally, it’s still the same old story as we continue to see global weakness and possibly more interest rate cuts from both the ECB and the MPC. It’s speculated that the UK will get hit the worst and with more room to cut in interest rates, we may see further declines in the Sterling against the Euro.
I’m looking to go long the pair, but I’m going to see if we get a bit more pullback to .8350