Trade Closed: 2007-12-04 15:00
Cable retraced during the morning European session and triggered our short position at 2.0650. There was enough volatility to take us down to 2.0600 – our first profit target. Unfortunately, the volatility also brought our position back up to our breakeven point and closed the second half of our position out.
1st Half: +50 pips
2nd Half: +00 pips
Total: +50 pips/ +.33% gain
For those who didn’t get a chance to adjust their stops after pt1 was hit, you’re still in the trade and I suggest adjusting stop on remaining position to 2.0600.
Trade Idea: 2007-12-03 23:30
We have tons of economic events this week, most notably the interest rate decisions for many of the major currencies. All of the monetary policy makers are expected to keep rates on hold which should further boost the Greenback in its current correction.
On the chart, we are starting to see some lower lows and highs form on the pair, so it looks like sellers have control for now. We will try to ride that sentiment down to the next support level around 2.0520. The pair has touched that area a few times before, so we will set our target at that area.
Short GBP/USD at 2.0650, stop at 2.0725, pt1 at 2.0600, pt2 at 2.0530
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
Good luck and good trading!