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.
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.
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!