Cross-Eyeing: EUR/GBP – Trade Closed

Trade Closed: 2007-08-15 10:55

Risk appetites rise today as the British Pound rallies against the Euro and closes out our trade at our adjusted stop price.

The pair could not quite reach our second profit target at .6800 before falling today as a bit risk appetite returns to the market as credit concerns ease and a view that equity markets may be oversold in the short term.

So, we closed our position locking in profit for both halves of our trade. I hope everyone did well!

1st half: +20 pips
2nd half: +20 pips
Total: +40 pips

Trade Update: 2007-08-14 12:00

Greetings! Just another quick update and adjustment to our long position in EUR/GBP.

Well, this pair has been trading sideways for the past few trading sessions, and having been within 10 pips of our second profit target. I don’t know how much longer the pair will range, but with the pair trading around .6790, I would like to lock in some profit on the remainder of our position by adjusting the stop.

Adjust stop on remainding position from .6750 (breakeven) to .6770.

Stay tuned for more updates and possible trade adjustments. Good luck!

Trade Update: 2007-08-10 10:22

Our trade was triggered last night as EUR/GBP briefly hit .6750 before a small rally through out the Asia/Euro trading session overlap.

Our first profit target at .6770 was easily hit during the opening of the European markets. We closed half of our position to lock in 20 pips, and adjusted the stop to breakeven on the remaining position to create a risk free trade.

Sub-prime issues in the US have seem to spread globally and are still a major concern, so we will hold onto this trade in hopes that higher-yielding currencies will continue to sell off as traders reduce risk. Stay tuned for updates and good luck!

Trade Idea: 2007-08-09 12:10

crosseyed chart

Good Day Mates! Today’s trade will once again EUR/GBP. I know everyone is thinking, “Again!” I know, I know…but Yen and Swissy crosses are a little too volatile at the moment. Plus the chart looks good on this one!

On the chart, we have the pair trading right around the 240 MA’s and the stochastics appear to be turning upward soon from oversold territory.

Fundamentally, the Euro has been gaining strength as traders price in a couple more rate hikes and the Pound has seen weakness on a recent report of foot-and-mouth disease in cattle from the UK. Also, I see global risk aversion to continue for a bit longer, meaning we see more selling of higher yielding currencies for the time being. So, the recent retracement may be a nice buying opportunity, but we will wait for a bit more retracement to jump in.

Long EUR/GBP at .6750, stop at .6710, pt1 at .6770, pt2 at .6800

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Good luck!