Pick of the Day: Cable – Trade Closed

Trade Closed: 2007-10-17 23:20

The MPC Meeting Minutes event turned out to whipsaw the markets as Cable drop as the report was released as expected, but ran into a wall of support at 2.03 before rallying up higher.

This movement was enough to trigger our short and then stop us out of our trade shortly afterwards. Doh!!

Total: -60 pips

Trade Idea: 2007-10-17 00:18

PoD Chart

Good evening! We’ve seen surprising weaker than expected inflation data push Cable lower, will the MPC Meeting Minutes do the same?

We will just have to wait and see when this event comes out at 4:30 am EDT. Cable is consolidating price action ahead of todays news. Consolidation many times precedes a breakout, so we will prepare for this scenario with a short trade just below the consolidation range. We will target the previous support level and our stop will be just above the consolidations range.

Short GBP/USD at 2.0290, stop at 2.0350, pt1 at 2.0250, pt2 at 2.0200

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

Good luck!