Pick of the Day: GBP/USD -Close Open Orders

Close Open Orders: 2007-03-08 15:15

We’re nearing the end of the trading day for the US trading session and it looks like GBP/USD has been trading in a tighter range than anticipated. It missed our long entry point at 1.9270 several times by hitting around 1.9280 before shooting back up to 1.9300. So, no trade for today and we will remove all orders and get ready for the infamous Non-Farm Payrolls report tomorrow. Stay tuned!

Trade Update: 2007-03-08 09:00

The Bank of England left interest rates at 5.25% as expected by the market. The market is currently finding support around 1.9280 and with no further major data coming out for the rest of the day we will probably see range bound trading. So, we will remove all open orders and go with a tighter range bound play.

Remove all open orders.

Long GBP/USD at 1.9270, stop at 1.9240, pt 1.9300

Short GBP/USD at 1.9350, stop at 1.9380, pt 1.9300

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

Good luck and trading!

Trade Idea: 2007-03-08 02:30

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The markets are quiet ahead of the Bank of England’s interest rate decision later today at 7:00 am EST. Market expectations are that the BoE holds rates at 5.25 percent so that they can evaltuate the effect the previous rate increases on the economy.

With market expectations at no change, we will probably see whip saw action in which we will fade any strong moves up or down. If there is a surprise and the Bank of England cuts or raises rates, then we may see a trend in either direction form. After which, we may have to change up our trade strategy. For now, we will be prepared for no change, and fade any whipsaw action.

Long GBP/USD at 1.9125, stop at 1.9065, pt at 1.9195

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Short GBP/USD at 1.9470, stop at 1.9510, pt at 1.9430

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

Good luck and trading!