Cross-Eyeing: EUR/GBP – Trade Closed

Trade Closed: 2007-04-24 22:05

crosseyed chart

We were stopped out of a frustrating trade today. At one point we were 2 pips away from hitting our first profit target, but it looks like Euro buying took over and bid the pair back up to our entry point and beyond to our adjusted stop levels. It looks like this pair will continue to range as stochastics are back up and the pair seems to find resistance at .6815.

1st half: -12 pips
2nd half: -16 pips
Toatal: -28 pips

Trade Update: 2007-04-23 07:40

Hello Everyone! Just a quick trade update. Both of our short entry orders have been triggered and our position is currently trading around .6780. So, we’ve collected about 30 pips total. I’d like to trail stop our position and move both stops down by ten pips from “.6820 and .6815″ to “.6810 and .6805.” Good luck!

Trade Idea: 2007-04-19 22:15

crosseyed chart

Tonight we will “Cross-Eye” the EUR/GBP currency cross. The fundamentals have been strong for Cable and continue to point to a rate hike or two by the MPC later this year. Recently, the Pound Sterling has taken a hit as higher yielding assets have been sold off against lower yielding ones to curb risk exposure, but how long will that last?

Well, UK fundamentals have not changed during the carry trade sell off, so I am still long bias on Cable, which means a short bias on EUR/GBP. We do have event risk later with the UK Retail Sales report at 04:30 am EST. Positive data should support Cable and be very profitable for our short bias.

Using the Fibonacci tool, we have found possible resistance points at the 61.% and 50% Fib lines – great areas to short in a downtrend. Here’s a couple of trade ideas:

Short half position EUR/GBP at .6798, stop at .6820, pt at .6770

Short half position EUR/GBP at .6789, stop at .6815, pt at .6765

Please remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly. Also, remember that the pip value on for every 10K units of EUR/GBP is about US$2 per pip!

  • fxcrawler

    Perfect Setup!

    It bounced off the 61.8% level (ariund 0.6800) down to 0.6779.

    Some nice 20 pips.

    Really Classic.

    Thanks Cyclopip

  • fxcrawler

    Perfect Setup!

    It bounced off the 61.8% level (ariund 0.6800) down to 0.6779.

    Some nice 20 pips.

    Really Classic.

    Thanks Cyclopip