Our trade unfortunately stopped out as the pair continued to rise on Pound strength and a return to carry trades.
What a frustrating trade as the pair spent most of the time ranging and we were constantly in and out of profit.
Total: -75 pips
Trade Adjustment: 2007-10-04 13:55
We’ve held onto this short for a few days now, and with US Non-Farm Payrolls ready to move currencies tomorrow I would like to adjust our exit strategy.
The pair has been ranging between 2.39 and 2.40, and it looks like it’s back on its way down to 2.39. Adjust current stop to 2.4025. We will close out half of our trade if it hits 2.3910 and adjust our stop to breakeven at that point. Our max profit target is now 2.3850.
Stay tuned for more updates and possible quick adjustments!
Trade Update: 2007-10-03 11:40
Just another quick update on our rollercoaster position in GBP/CHF.
Talk about volatility. The pair moved up above 2.4000, then back down below our short entry at 2.3950, and back up again near 2.4000. Well, that’s what we expect from GBP/CHF, and we’ll just have to wait and see if the 2.4000 will hold and if the pair will move back lower.
Trade Update: 2007-10-02 13:00
As expected, the pair pushed up a little bit further up to our sell entry point at 2.3950. It was a pretty strong move as it brought us near our stop out point before returning below 2.4000 back near our entry point.
So, we will just have to wait and see where the pair takes us from this point. Stay tuned for updates and possible trade adjustments. Good luck!
Trade Idea: 2007-10-01 20:30
We have a potential short play on GBP/CHF as the pair has rallied back up to the 240 MA’s as investors risk appetite grows once again.
The run may be exhausted as we see a divergence as stochastics trend lower and price action takes the pair higher.
Growing risk appetite may continue, but as we have seen in the past, that can change on a dime as lending issues and housing growth in the UK may be a concern in the near future.
I still feel confident we may see one last push higher before a possible reversal to the longer term downtrend and we will wait for a better entry price at 2.3950. We will have a wide stop of 100 pips, so adjust your position sizes accordingly to stay within the 1% risk rule!
Short GBP/CHF at 2.3950, stop at 2.4050, pt1 at 2.3850, pt2 at 2.3750