Trade Closed: 2007-08-06 07:45
The British Pound has fallen against the Euro in the past few trading sessions as the market prices in only one more rate hike in the UK, but two more rate hikes by the ECB.
This was positive for our trade, as we saw our long trade in EUR/GBP reach full profitability as it rallied and hit our second profit target at .6790.
1st half: +20 pips
2nd half: +50 pips
Total: +70 pips
Trade Update: 2007-08-03 15:05
Our orders to go long at .6740 has been triggered after this morning’s volatile US news reports. We are currently up +15 pips on our position, and hopefully we can hit pt1 before the end of the day to lock in profits and adjust stops.
Please close all open short orders and stay tuned for any possible trade adjustments. Good luck!
Trade Idea: 2007-08-02 21:02
Let’s take a look at EUR/GBP once again as the recent retracement may prove to be an excellent area to jump in long or a sign that the longer term downtrend will resume.
First, we saw both the ECB and Bank of England’s Monetary Policy Committee hold their interest rates, 4.00% and 5.75% respectively, as expected. So, no major changes on the fundamental front, which brings us to the question on whether or not traders are ready to return to riskier, higher interest assets.
The recent retracement from the upmove could be the pair resuming the longer term downtrend, or it could be a nice opportunity to go long at a better price. We won’t know where the pair will head, but what we do know is that the pair is currently ranging which means we may see a move soon. So we will set up a straddle play to catch either scenario.
Short EUR/GBP at .6710, stop at 6740, pt1 at .6690, pt2 at .6670
Long EUR/GBP at .6740, stop at .6710, pt1 at .6760, pt2 at .6790
Remember to never risk more than 1% on any single trade. Adjust position sizes accordingly.