Pick of the Day: GBP/USD – Trade Closed

Trade Closed: 2007-11-06 10:37

Cable bulls came in as hoped to push the pair back up to 2.09. Our position closed at full profit…

1st Half: +25 pips
2nd Half: +70 pips
Total: +95 pips

I will continue to watch this pair and possibly go long once again if we see more buying above 2.09. Stay tuned!

Trade Idea: 2007-11-05 20:15

PoD Chart

Cable fell from all time highs on risk reduction , but it seems to have found buyers around 2.0800. Will the uptrend resume?

With such strong negative Dollar sentiment in the market, I think the pair will continue higher. Fundamentally, there are concerns of how hard the credit crunch has affected the UK economy, but with inflation on the rise, I think the MPC will hold rates at this weeks meeting.

On the chart we can see that Cable has met support around 2.0800, showing us that Cable bulls are not ready to let the trend fall. Also, stochastics are not quite in oversold territory, but it looks like its ready to turn higher.

Long GBP/USD at 2.0825, stop at 2.0755, pt1 at 2.0850, pt2 at 2.0895

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

Good luck and stay tuned for trade adjustments!

14 comments

  1. 4xpipcounter

    I see strong support around 2.0524. I called that in a chat room I belong to when it started dropping from the 2.011′s. I think we are in for more wide-range corrective consolidation. Resistances up top are at 2.0901, 2.0973, 2.1006. One of those points the correction shuold be over, and we are back in the DOWN headed to 2.0391. Why do I believe that? Anytime the stochastics are OB like they are on the weekly, we get a move back to the weekly kijun, which is 2.0391. I’m new here, but just my view on things.

    Reply
  2. 4xpipcounter

    I see strong support around 2.0524. I called that in a chat room I belong to when it started dropping from the 2.011′s. I think we are in for more wide-range corrective consolidation. Resistances up top are at 2.0901, 2.0973, 2.1006. One of those points the correction shuold be over, and we are back in the DOWN headed to 2.0391. Why do I believe that? Anytime the stochastics are OB like they are on the weekly, we get a move back to the weekly kijun, which is 2.0391. I’m new here, but just my view on things.

    Reply

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