Pick of the Day: GBP/USD

Trade Close: 2007-07-20 14:50

Well, after a few days of no trades, we were finally triggered on our short orders as UK GDP came in slightly higher than expected at 0.8% and more USD selling. Unfortunately, it did not work out in our favor as the upward momentum easily took the pair to our stop at 2.0585.

Total: -40 pips

Please close all remaining orders and go enjoy your weekend! :)

Trade Idea: 2007-07-19 23:35

PoD Chart

Good evening! Okay, I didn’t want to do it, but we’re going with Cable one last time! Haha. Well, we have UK GDP later today, and market sentiment is that it will come inline. With the lack of any major news tomorrow, I expect Cable to be range bound as we close out the week.

On the chart, we can see that the pair failed to break above 2.0450, showing that recent UK data has changed the strong bullish sentiment, and that the recent rally has just been on USD weakness.

So, i am short bias for the very short term. If we do see volatility later in the European trading session, it may be enough to trigger orders at the support an resistance levels I have drawn out on the chart. So, here’s our trade idea:

Short GBP/USD at 2.0545, stop at 2.0585, pt1 at 2.0525, pt2 at 2.0500

or

Long GBP/USD at 2.0440, stop at 2.0400, pt1 at 2.0460, pt2 at 2.0480

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

Let’s end the week strong! Good luck and good trading!

  • deleted

    Your effort to improve people trading is realy appreciated.Now what are the instrument to put in place that will indicate either to buy or sell at the appopriate time.I intend to know much about pivot-point and other relative indicator that can make me one of the best trader.Thank you. Regards.Petersmith O.A. Email:olofin2@yahoo.com +2348033954270.

  • deleted

    Your effort to improve people trading is realy appreciated.Now what are the instrument to put in place that will indicate either to buy or sell at the appopriate time.I intend to know much about pivot-point and other relative indicator that can make me one of the best trader.Thank you. Regards.Petersmith O.A. Email:olofin2@yahoo.com +2348033954270.

  • deleted

    Your effort to improve people trading is realy appreciated.Now what are the instrument to put in place that will indicate either to buy or sell at the appopriate time.I intend to know much about pivot-point and other relative indicator that can make me one of the best trader.Thank you. Regards.Petersmith O.A. Email:olofin2@yahoo.com +2348033954270.

  • swordofrue

    Well Pipcrawler,

    They all can’t work out right? I was thinking completely opposite. I was thinking long on the pull back to the first fib. I wasn’t very confident though so I didn’t do it. It is just amazing me how much cable is going up. I probably will just not mess with cable for awhile until we get a nice down trend.

    –Swordofrue

  • swordofrue

    Well Pipcrawler,

    They all can’t work out right? I was thinking completely opposite. I was thinking long on the pull back to the first fib. I wasn’t very confident though so I didn’t do it. It is just amazing me how much cable is going up. I probably will just not mess with cable for awhile until we get a nice down trend.

    –Swordofrue