Long EUR/GBP – Trade Closed

Trade Closed: 2007-07-27 10:25

It looks like ran into a bit of bad luck as our trade was stopped out for a small loss of -20 pips. The bad luck was that the pair hit our stop level at .6680 briefly before rallying up beyond our first profit target.

It looks like our stop was just a bit too tight, even for this pair which ranges an average only 29 pips a day for the last week or so.

Total: -20 pips

Stay tuned for more trade ideas as the recent global risk aversion may prove to be excellent buying opportunities.

Trade Update: 2007-07-24 21:05

Just a quick review on our long trade on EUR/GBP. We were triggered yesterday to go long at .6700 and we saw the pair drop as low as .6685 before finding support and rallying a bit.

Our position is currently trading around .6710 – halfway to our first profit target. Again, once .6720 is hit we will close half of our position to lock in profit and adjust stop on remaining position to breakeven.

Stay tuned for updates…Good luck!

Trade Idea: 2007-07-23 10:35

crosseyed chart

Good morning! I thought I’d just point out a nice little chart setup with a nice little risk to reward ratio and “probability of profitability” (man, say that three times fast!) 🙂

On the chart, we can see the pair approaching .6700. Remember that major price areas ending in 00’s can be a psychological barrier. Also, the pair has made a nice run from around .6780, and with stochastics are currently showing the pair oversold, it might be a good time for traders to take profits on this run.

So, here’s a trade idea to take advantage, of a possible retracement. We will keep the profit targets and stops tight because we are trading against the current trend, but I still think we have a good chance of making 20 – 30 pips on this one.

Long EUR/GBP at .6700, stop at .6680, pt1 at .6720, pt2 at .6740

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

Stay tuned for updates. Based on price action I may cut this trade quick and reverse, if the momentum is strong enough to the downside. Good luck!