Pick of the Day: GBP/USD

Trade Close: 2007-01-24 09:00

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We hit profitability last night as the Greenback gained broad strength against the majors during the morning Euro trading session. Both profit targets were easily hit for a total of +70 pips, even before we saw news out of the UK showing a 0.8% rise in GDP and the surprising 5-4 vote for a rate hike from the Bank of England. Congrats to everyone who caught some pips!

1st Half: +20 pips
2nd Half: +50 pips
Total: +70 pips

Trade Idea: 2007-01-23 23:50

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With positive outlooks priced into GBP/USD already, traders are waiting for a new catalyst to spark a move as the pair trades in a 30 pips range. Tonight, we may have that catalyst out of the UK with the Bank of England Meeting Minutes and quarterly GDP report later tonight.

If we do see a breakout, we will look to lock in quick profits by closing half our trades and moving our stops after about 20 pips. Our max targets will be R1 and S1 pivot levels draw onto our charts. Here are a couple of trade ideas:

Long GBP/USD at 1.9840, stop at 1.9800, pt1 at 1.9860, pt2 at 1.9900

or

Short GBP/USD at 1.9790, stop at 1.9830, pt1 at 1.9770, pt2 at 1.9740

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!

  • Shaggie

    Very nice call, so early in the evening, now i can get some sleep lol Again Nice Call

    Happy Pippin

  • Shaggie

    Very nice call, so early in the evening, now i can get some sleep lol Again Nice Call

    Happy Pippin

  • pipcrawler

    thanks shaggie. I’ll try to get my picks out that early from now on. lol

  • pipcrawler

    thanks shaggie. I’ll try to get my picks out that early from now on. lol