Trade Update: 2007-07-09 13:25
And we are once again short EUR/GBP at the new entry price of .6760. The pair did make a run up towards .6780 before turning lower and trading below our entry price, currently around .6755. Has the short term trend realigned with the longer term trend?? We will just have and see.
Stay tuned for more updates and a possible trade idea on GBP/CHF!
Trade Review and Back In: 2007-07-05 21:15
Our original short in EUR/GBP was triggered soon after the idea was posted, but stopped out on a spike up during yesterday’s Euro trading session. This pair is still in a longer term down trend with the interest rate differential favoring a short play. I think our stop may have been just a bit too tight, so I’m jumping back in…who’s with me???
So, we lost -30 pips on this first trade, but I’m jumping back in short as it looks like the pair is having trouble breaking above the 240 MA’s…
Short EUR/GBP at .6760, stop at .6790, pt1 at .6740, pt2 at .6710
Trade Idea: 2007-07-03 11:00
We have a nice little chart setup on the EUR/GBP. It looks like the retracement found resistance at the 240 moving averages, and the downtrend may resume. Stochastics are coming out of overbought territory and starting to trend lower as well.
Fundamentally, the big news for the week for both currencies are the interest rate decisions from the Bank of England and European Central Bank, with the former expecting to hike rates. The only way I can see this trade going against us is if the ECB hikes rates and the BoE keeps things unchanged or lowers rates. Any other scenario favors Sterling and its higher interest rates.
Short EUR/GBP at .6745, stop at .6775, pt1 at .6725, pt2 at .6700
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly!