GBP/USD: Jumping on a Retracement! – Orders Canceled

Trade Canceled: December 2, 2013 | 12:55 am
Retracement? What’s that?!

Thanks to strong U.K. fundamentals, GBP/USD has just clocked new highs today. And the London session hasn’t even started yet! Crazy.

GBPUSD

Unfortunately, this also means that the pair isn’t likely to drop back down to the retracement level that I’m watching (1.6250). Heck, the 100 SMA support is already above 1.6250! Time to move on, don’t you think? I’ll still watch this pair in case there’s another retracement opportunity, but for now I’ll also look at other pairs for trade ideas. Got any setups in mind?

Trade Idea: November 29, 2013 | 2:48 am

‘Tis the season for strong trends!

While I’m letting my USD/JPY trade play out, I’m also thinking of jumping on GBP/USD’s uptrend.

GBPUSD

As Big Pippin has mentioned, GBP/USD has just broken above a long-term range on the daily chart. I’m seeing a retracement opportunity at the 1.6250 minor psychological level though, since the area is right around a previous resistance and 50% Fib retracement zone. Oh, and it’s also near the 100 SMA! Who needs Black Friday sales when there are bargains like this right?

I put orders worth 0.50% of my account at 1.6250 and placed my initial stop losses 100 pips away because I’m planning to keep my orders over the weekend. For now I’ll be aiming for a 2:1 risk trade.

What do you think of my plan? Do you think the pair even reach my orders this week?

Happy Black Friday by the way!

Huck

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  • Alharosh

    Based on me analysis on daily time fram, am going to short my postion, and am going to leave it over weekend.good luck

    • Hucklekiwi Pip

      Hey Alharosh!

      Did your short position get triggered?

  • FxSniper

    Pair is clearly in a bullish trend and it serves well to let it retrace a bit before jumping further in. I am waiting at 1.62500 area. Every long term indication is that pair is able to make at least 1.6750 before next year. It could well hit 1.70! same with eurusd with 1.4250

    • Hucklekiwi Pip

      We have the same setup! The pair didn’t retrace that far back though. Did you have other entry areas in mind? I think I’ll just let this one go and find another opportunity. 🙂

  • FxSniper

    No. I liquidate my long held long position and am determined on 1.6250 area for another one. If not, I will let it go. I strongly believe that pair looks vulnerable off current highs and bound to fade a bit before it can garner more strength for further moves up. 1.6250 or nothing, here!

  • FxSniper

    I would however not venture into any short position be it on eurusd or gbpusd at this time. Clearly dangerous. Best shorts at this time would be on the yens especially eurjpy and gbpjpy and cadjpy or gbpaud or euraud… Anything Aussie or kiwi short would be playing with fire

  • FxSniper

    I also have a great short on gbpnzd

    • Hucklekiwi Pip

      Short GBP/NZD looks good on the daily chart. Where were you able to enter? 🙂

      • FxSniper

        Yes, and scheduled to book it at 1.9560. It’s almost there and I will have to leave it open over the weekend with adjusted stop of course! Did you join?

  • FxSniper

    I shorted 2.0124