Pick of the Day: GBP/USD – Trade Closed

Trade Closed: 2007-12-12 10:50

As expected, we saw a bit of volatility from this morning’s economic reports. Our short entry orders were triggered late in the morning European trading session and fell just enough to hit our first profit target and close out half of our position. US trade data came out soon after and reversed Cable on us to stop our remaining position out a break even.

Close open orders.

1st Half: +50 pips
2nd Half: +00 pips
Total: +50 pips/ +.50%

I hope this idea helped in your own trading. Stay tuned for a new idea tonight as we have US CPI data inline for tomorrow.

Trade Idea: 2007-12-11 22:24

PoD Chart

Today, we will take a look at Cable and a possible range play on a couple of ideas.

First, we do have economic events from both the UK (Average Earnings Index, Claimant Count) and the US (Trade Balance), so we may see a bit of volatility during tomorrow’s trading sessions. This may move Cable throughout its daily range of about 180 pips.

Our short idea is based on today’s price action as Cable sold off after the FOMC report. If the pair corrects a bit higher, we may see sellers jump back in around 2.0450.

Our long idea is based on previous support price action. As we can see on the chart, traders were undecided for a bit between 2.02 – 2.03 before breaking higher. We may see buyers parked there once again as it is an attractive area to jump back into positive carry.

Short GBP/USD at 2.0450, stop at 2.0500, pt1 at 2.0400, pt2 at 2.0300

Long GBP/USD at 2.0270, stop at 2.0220, pt1 at 2.0320, pt2 at 2.0370

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

Stay tuned for updates! Good luck and good trading!

10 comments

  1. pip_master

    nice thinking!…I was also waiting to go long around support area…but good idea for the short too
    Best of luck!

    Reply
  2. pip_master

    nice thinking!…I was also waiting to go long around support area…but good idea for the short too
    Best of luck!

    Reply
  3. hypnos63

    hi
    looks good but how do you set up to tp levels in advance? or do you watch the trade until the first then re-open?

    in other words how do you do a partial on MT4?

    thanks

    Reply
  4. hypnos63

    hi
    looks good but how do you set up to tp levels in advance? or do you watch the trade until the first then re-open?

    in other words how do you do a partial on MT4?

    thanks

    Reply

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