Trade Update: 2013-09-17 8:46 am EST
As Miley’s engagement has proven us, some good things aren’t meant to last. In my case, I got out of my GBP/USD trade sooner than I had expected. Boo!
Last Monday the dollar fell across the board faster almost as soon as the Asian markets opened. Apparently, it was a good thing for risk appetite that Lawrence Summers is out of the running for the next Fed head.
Unfortunately, GBP/USD shot up along with other major dollar pairs. It hit my profit target at 1.5900 before I could manually move it! I’ll try not to be too sad about it though. After all, I did get a total of 500 pips from it. Here’s a summary:
First position: +150 pips
Second position: +350 pips
Total pips: +500 pips
Total % gain: +2.39%
Total R:R: 3.56:1
Not bad for a few days’ worth of trading, don’t you think? On to the next trade!
Trade Update: 2013-09-11 3:35 am EST
Thanks to a weak NFP report and concerns over Syria, GBP/USD’s rising channel played out beautifully and bounced from my 1.5550 entry. It even hit my initial profit target at 1.5700!
With the U.K. employment numbers only a few minutes away though, I decided to lock in profits. For one thing, GBP/USD is already close to some significant resistance levels on the daily chart. The dollar selloff also looks like it’s losing steam, as evidenced by USD/JPY and USD/CHF’s gains yesterday.
Here’s how my trade is shaping up so far:
First position (0.25%) = Closed at 1.5700 for a 0.72% gain
Second position (0.25%) = Locked in 100 pips with a 70-pip manual trailing stop
If the report comes in weaker-than-expected, then I’ll manually close the trade and call it a day. If it comes in strong though, I might add to my position and wait for it to hit 1.5900.
Hoping for a positive report today!
Trade Update: 2013-09-05 3:05 am EST
As I mentioned on my Twitter and Facebook updates, my orders at 1.5550 got triggered on the same day that I placed them! The U.K.’s services PMI report came in better-than-expected yesterday, so I’m still feeling confident about my trade idea. On a technical basis, Cable also hasn’t broken its rising channel pattern, and it looks like the 200 SMA is still intact.
But but but! The BOE’s monetary policy decision is just hours away! I decided to protect my profits by placing my stop loss to BE +5 pips. I would have used my usual trailing stop, but I think the pair could easily choke my trade especially since there’s usually extra volatility around Carney’s speeches.
Right now I see that the pair is heading back to its weekly highs. I hope we see new highs today!
Trade Idea: 2013-09-03 4:05 am EST
This week I’m setting my eyes on GBP/USD’s yummy setup on the 4-hour chart!
As Big Pippin has pointed out a while ago, GBP/USD has been on an uptrend since early July. In fact, if you take a look at the 4-hour chart you’ll see that the pair had just bounced from a 38.2% Fibonacci retracement level and it looks like it has room to go higher.
I’m crossing my fingers that the U.K.’s construction PMI report is what the pound bulls are waiting before they push this pair higher!
I’m bullish on the pound this week because I remember that just last week, Mark Carney had recognized the improvements in the U.K.’s leading indicators. This led to speculations that the BOE might raise its interest rates sooner than it’s planning to.
It also helped the pound that yesterday’s manufacturing PMI came in at 57.2 instead of the 54.8 reading that my forex friends had been waiting for. With the construction PMI surpassing market expectations for the past four months along with the manufacturing PMI, I’m having good vibes about this release.
I have placed orders at the 1.5550 minor handle, which is near a resistance-turned-support level on the lower time frames. I put placed my stop loss 70 pips away, which is already below the rising channel support and the pair’s previous lows. My initial profit target is at 1.5700 for at least a 2:1 trade, but I could always move stop to break even and aim higher.
That’s my plan this week! Let me know if you have tips or suggestions, ok?